Sector accounts; current transactions by sectors 1969- q4 2013

Table explanation

Description topics

Resources

Revenue of institutional sectors.

Output

Output covers the value of all goods produced for sale, including unsold goods, and all receipts of services rendered. Output furthermore covers the market equivalent of goods and services produced for own use, such as own account capital formation, services of owner-occupied dwellings and agricultural products produced by farmers for own consumption. The output of such goods is estimated by valuing the quantities produced against the price that the producer would have received if these goods had been sold.
Output is valued at basic prices, defined as the price received by the producer excluding trade and transport margins and the balance of taxes and subsidies on products. This is the price the producer is ultimately left with.

Output for own final consumption

Output for final consumption by the same institutional unit.
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Some examples of production for own consumption are:
- agricultural products retained by farmers;
- housing services produced by owner-occupiers;
- household services produced by employing paid staff.

Uses

Expenditure by institutional sectors.

Intermediate consumption

Intermediate consumption includes all goods and services used up in the production process in the accounting period, regardless the date of purchase. This includes for example fuel, raw materials, semi manufactured goods, communication services, cleansing services and audits by accountants. Intermediate consumption is valued at purchasers' prices, excluding deductible VAT.

Final consumption expenditure

Final consumption expenditure consists of expenditure incurred by resident institutional units on goods and services that are used for the direct satisfaction of individual needs or wants or the collective needs of members of the community. Final consumption expenditure may take place on the domestic territory or abroad.
Final consumption expenditure exists only for households, NPI households and general government.

Total

Final consumption expenditure consists of expenditure incurred by resident institutional units on goods and services that are used for the direct satisfaction of individual needs or wants or the collective needs of members of the community. Final consumption expenditure may take place on the domestic territory or abroad.
Final consumption expenditure exists only for households, NPI households and general government.

Actual collective final consumption

Services for collective consumption (collective services) are provided simultaneously to all members of the community or all members of a particular section of the community.
Collective consumption consists in particular of government expenditures and on services in the field of:
- management and regulation of society
- security and defence
- law and order, legislation and regulation
- public health
- environment
- research and development
- infrastructure and economic development
The actual collective final consumption is calculated by subtracting the actual individual final consumption from the total consumption expenditure.

Actual individual final consumption

Final consumption expenditure by households refers to expenditure on consumption goods and services. In contrast, actual final consumption refers to the acquisition of consumption goods and services. The difference between these concepts lies in the treatment of certain goods and services financed by the government or NPI households but supplied to households as social transfers in kind.
By convention, all final consumption expenditure by NPI households and most of the final consumption expenditure by the government in the field of education, health, social security and welfare, sport and recreation and culture are treated as individual consumption.
So actual individual consumption is:

  final consumption expenditure by households
plus:  final consumption expenditure by NPI households
plus:  individual consumption by the government

=  actual individual consumption

Total

Final consumption expenditure by households refers to expenditure on consumption goods and services. In contrast, actual final consumption refers to the acquisition of consumption goods and services. The difference between these concepts lies in the treatment of certain goods and services financed by the government or NPI households but supplied to households as social transfers in kind.
By convention, all final consumption expenditure by NPI households and most of the final consumption expenditure by the government in the field of education, health, social security and welfare, sport and recreation and culture are treated as individual consumption.
So actual individual consumption is:

  final consumption expenditure by households
plus:  final consumption expenditure by NPI households
plus:  individual consumption by the government

=  actual individual consumption

Final consumption expenditure households

Final consumption expenditure by households and NPI households

Final consumption expenditure by households includes the following borderline cases:
- income in kind like accommodation, food, clothing etc.
- services of dwellings, which are occupied by the owners themselves and without any ac-tual rent payments. These services are valued by applying the rents of similar dwellings.
- goods and services produced for own use, as in agriculture. The value of these products is calculated by applying the market prices for similar products.
- durable consumption goods such as private cars, household appliances, furniture and clothing. However, the purchases of dwellings by households are not seen as final con-sumption, but as fixed capital formation by households.
The detailed data on consumption of households concern private domestic consumption ex-penditure. This includes final consumption in the Netherlands by residents and non-residents. Final consumption by households can be calculated by deducting from private domestic consumption expenditure the final consumption by non-residents in the Nether-lands (registered as exports) and adding final consumption by households in the rest of the world (registered as imports).

Final consumption expenditure by NPI households consists of all the non-market output of this sector excluding the own account capital formation.

Capital formation

Capital formation consists of capital formation in fixed assets and changes in inventories including valuables.

Gross fixed capital formation

Expenditure for produced tangible or intangible assets that are used in the production process for more than one year.

Gross fixed capital formation consists of producers’ acquisitions less disposals of fixed assets:
- acquisitions, less disposals, of tangible fixed assets:
dwellings and non-residential buildings.
civil engineering works.
transport equipment.
machinery, equipment and computers.
cultivated assets (trees and livestock).
- acquisitions, less disposals, of intangible fixed assets:
mineral exploration.
computer software.
entertainment, literary or artistic originals.
other intangible fixed assets.
- major improvements to land (reclamation, land consolidation and land preparing for building).

Fixed capital formation also includes:
- work in progress of construction such as unfinished dwellings, non-residential buildings and civil engineering works are recorded as fixed capital formation of the client.
- military structures and equipment, similar to those used by civilian producers, such as airfields and hospitals.
- improvements to existing fixed assets that go well beyond the requirements of ordinary maintenance and repairs.
- transfer costs of fixed assets, such as conveyance fees and costs made by real estate agents, architects and notaries.

On the level of the total economy and the institutional sectors, an adjustment is made for the transactions in used fixed assets, which are seen as investments of the buyer and disinvestment of the seller. This adjustment is not made for the industries.
The registration of fixed capital formation by industry and institutional sector is based on ownership. That means that fixed capital formation is registered on the industry or sector which can be considered to be the economic owner of the capital goods concerned.

Consumption of fixed capital

Consumption of fixed capital represents the depreciation of the stock of fixed assets, as a result of normal technical and economical ageing and insurable accidental damage. Losses due to catastrophes and unforeseen ageing are seen as a capital loss.
For the estimation of the consumption of fixed capital the time series of fixed capital formation are transformed into a net stock of fixed assets with the help of the perpetual inventory method (PIM). The consumption of fixed capital is the depreciation of the net stock of fixed assets during the year as far as not caused by revaluations because of price changes, new fixed capital formation or discarding of fixed assets.
This method may differ considerably from the method used to calculate depreciation in business accounts, which is based on historical costs or fiscal life span.