Keyword |
Vocabulary |
Shipments and Other Receipts
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Information on output and other receipts was gathered on a "shipment" basis as recommended by the U.N., rather than on the usual "production" basis. Thus each establishment was requested to report on (i) the quantity and value of shipments of products made, and (ii) receipts on specified categories of industrial services and on other miscellaneous receipts. In the case of products made (category (i) above), shipments covered the moving out or release from the establishment (i.e. from factory, plant, mine etc). of goods produced, to the following broad categories of customer. (a) transfer to other establishments of the same enterprise, including transfer to wholesale and retail organizations under the same ownership, (b) deliveries to other enterprise, (c) delivery of all goods sent abroad for sale. The valuation of goods shipped was to be reported at producers' prices. I.e. the establishment price charged to the customer, whether ex-factory or delivered. The valuation should include all duties and taxes which fall on products when they leave the establishment. Any subsidies received by the establishment were to be excluded, and price rebates, and discounts and allowances on returned goods given to the customer, were also to be deducted. Shipments to other establishments within the same enterprise were to be valued as though sold, or else at book value. Where the shipment of the product takes place ex-factory, the establishment price invoiced to the customer would exclude transportation costs. Where the terms of the shipping transaction involved delivery to the customer however, the charges invoiced to clients were to be reported to include transportation costs as well, and in such instances, the valuation of the shipment would be a somewhat higher price than the standard producers' price, as recommended for compiling national accounts statistics. Under receipts on industrial services and other miscellaneous receipts (category (ii) above), the principal items were (a) contract and commission work done for others on their materials, (b) Repair and installation work done for others, (c) Industrial Services, (d) Value of own-account construction work, and (e) Sale of goods bought and sold in the same condition. The valuation of the above items was to be done at actual invoice price, including taxes charged to the customer. In the case of the specified items of industrial services done for others, as well for own-account investment work, the valuation would include the cost of labor and the overheads apportion-able to the work.
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Gross Output at Producer's Prices
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Since the shipment concept, as recommended by the U.N. was adopted at the 200312004 Industry Census, the total value of shipments of products made and of other receipts, as reported by establishments, required an adjustment for changes in the value of their stock of finished goods, goods for resale, and work in progress, to obtain the usual measure of gross output in producers' prices. The derived values of gross output for 2003 have thus been obtained for each establishment as follows: (a) Establishment with 10 and over persons. Gross Output = Total value of shipments of products and other receipts + Net change in the value of the stocks of finished goods, goods for resale and work in progress and (b) Establishments with less than 10 persons For this category of Establishments, the value of shipments and other receipots was reckoned as approximating their gross output value.
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Estimates of Value Added
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As the term implies, value added is the increment to the value of commodities and services that is contributed by the producing establishment i.e. the value created by the establishment. It is computed as follows. Value added = Gross Output - Cost of raw materials, power and industrial services used. When summed up for all establishments in a given industry, value added is the incremental value of goods and services attributable to that industry. Detailed figures on value added at the three digit level of the ISIC are not included in the main tables of the preliminary release, but summary estimates of value added at Major Division and Industry Division level, are discussed in some detail in the the report.
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Employment
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The detailed data obtained on employment related to the number of persons engaged in the establishment. The number of persons was defined as the total number of persons, who work in or for the establishment, including working proprietors and active partners, unpaid family workers, operatives and all other employees. (a) Working proprietors and active partners - This category comprised all individual proprietors and partners who were actively engaged in the work of the establishment: Managers and directors, working for pay were to be reported as "other employees". (b) Unpaid family workers .- This category included all persons living in the household of the owners and working in the establishment, without regular pay, for at least one third of the normal working time of the establishment. (c) Operatives - This category was defined as all paid employees who were directly engaged in the production or related activities ,of the establishment, including any clerical or working supervisory personnel whose function was to record or expedite any step I the production process. (d) Other Employees - This category comprises all paid employees except those already reported as operatives. e.g. administrative, technical and clerical personnel such as salaried managers, and directors, laboratory and research workers, clerks, typists, watchmen, book-keepers, salesmen and the like (e) Home workers - This category included all persons employed by the establishment generally on a piece-work basis, who work in their own homes and whose names appear on the establishment payroll. It does not include home workers who are engaged by subcontractors. The number of persons engaged to be reported, was the average number of employees viz. categories (c), (d) and (e) above, (the arithmetic average of the number of employees in five specified pay periods of the reference year), plus the number of working proprietors and active partners and of unpaid family workers, during the reference year. The figures shown on employment in the tables of this preliminary release refer to the total number of persons engaged, (i.e. the aggregate of the four categories mentioned above).
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Wages and Salaries
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This category covers all payments whether in cash or kind, made by the employees during the reference year in connection with work done, to all persons included in the count of "employees". The payments include (a) all regular and overtime cash payments, bonuses and cost of living allowances, (b) wages and salaries paid during vacation and sick leave, (c) taxes and social insurance contributions and the like payable by employees but deducted by the employer, (d) payments in kind. Social insurance contribution and contributions and pension and welfare funds payable by the employer are excluded from this category.
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Supplements to Wages and salaries
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This covered payments made by employers on behalf of this employees with respect to, (a) Statutory social security contributions (e.g. E.P.F., W. & O.P.) and, (b) other programmes such as collectively agreed contractual contributions to private pension and insurance schemes and to the cost of medical and health-care services provided by outside organization etc., The sum of this item and of "Wages and Salaries", for all establishments, equals total compensation of employees in each industry. It is value of this aggregate, which is given under the "wages and salaries" column of the tables of this preliminary release.
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Input Costs
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Data on inputs requested, covered the costs of (a) Materials, parts, components, containers and supplies (for factory and office) (b) Purchased fuels, water and electricity, (c) Cost of contract and commission work and of repair and maintenance work done by others for the establishment (i.e. industrial services rendered by other establishments) (d) Cost of goods purchased for resale. This reporting of inputs was requested on the basis of "purchasers" rather than of "consumption". The valuation of total inputs and its components was requested at current purchasers' price (equivalent to producers' prices plus the trade and transport charges incurred in delivering the commodities from the producer to the purchaser). The estimates of the total cost of materials and industrial services actually used or consumed by the establishment during 2003, was obtained by adjusting the figures of cost of material and fuels etc. purchased, for changes in its value of stocks of materials, fuels and supplies. (in practice this adjustments involves the adding of the beginning of year value of material stocks to the total purchase value of raw-materials etc. during the reference year, and subtracting the value of raw-material stocks as at end of the same year).
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Stocks
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Value data was requested on the following categories of stocks owned by the establishment at the beginning and the end of the reference year. (a) Materials, fuels and supplies, (b) Work in progress, (c) Finished goods and (d) Goods for resale In general, stocks acquired from others were to be valued at purchasers' price and those produced internally at producers' price. In the case of the sample of smaller establishments enumerated, where a more limited range of information was canvassed on a short questionnaire, separate data was not sought on stocks as was done in the full enumeration of the medium to larger establishments
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Gross Fixed Capital Formation
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Gross fixed capital formation, for which data on gross additions to fixed assets were canvassed, is defined as the outlays of industries on additions to their fixed assets, during the reference year, less the corresponding value of sales of used fixed assets. Data sought from establishments thus related to expenditure on all fixed assets (i.e. durable goods) acquired by the establishment, and expected to have a productive life of more than one year. The expenditure figures were to be classified under the following broad types of assets: Land, Buildings and other construction, Machinery and Equipment, Transport Equipment. Expenditures reported were to cover outlays on (a) new fixed assets, which were to include all new assets as well as used imported assets that have not previously been used in Sri Lanka, (b) second-hand assets (i.e. assets previously used in the country), (c) major additions, alterations and improvements to existing assets that cA1:ended their normal economic life or raise their productivity, (d) fixed assets and improvements thereto, made by its labor for its own use. Valuation of fixed assets acquired from others was to be at the full cost i. e. the delivered price plus cost of installation and any necessary fees and taxes. Fixed assets produced on own account were also to be valued in the manner as described above. In the case of own-account construction of structures and other works, and of alterations however, the valuation would in practice, often be at explicit cost, including any imputations which may be required in respect of own-labor and material used, and an allocation for overheads. Sales of used assets were to be at the actual amounts realized.
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