Ouput (P1) is an activity performed under the control and the responsibility of an institutional unit which combines entries - work, capital, goods and services - to produce goods or provide services. Output is mostly destinated to institutional units other than the productive unit, but it may also be used by producer. There are three types of production:

market output (P11), which includes mostly products selled at "economically significant" prices;
output produced for own final use (P12), which includes goods and, limitedly, services produced by an institutional unit for its own final consumption or its own fixed capital formation. Output of housing service by households which own their dwelling belongs to this category;
non-market output (P13), which designate output intended for other institutional units, when it is delivered for free of charge or at prices that are not economically significant.

Time of recording and valuation of output

Output is valued and recorded when it is generated.

Market output (P11) is valued at basic price. This price corresponds to the amount receivable by the producer from the purchaser minus, if appropriate, taxes upon products (VAT, taxes upon alcohols and tobacco, domestic taxe upon energetical products, etc.) and plus subsidies upon products (mainly upon transport et agricultural products). Basic price excludes transport charges invoiced separately by the producer, but includes non isolated transport charges.

Output for own final use (P12) is normally valued at basic price of similar products sold on the market. Therefore, this may generate net operating surplus or mixed income.

Non-market output (P13) is valued at costs of production, i.e. as the sum of intermediate consumption (P2), compensation of employees (D1), consumption of fixed capital (P51c) and other taxes on production (D29) less other subsidies on production (D39).

Intermediate consumption

Intermediate consumption (P2) is equal to the value of goods and services consumed during the production process. On the other side, the loss of value incurred by fixed assets during the production process is a consumption of fixed capital (P51c).

Sometimes, the dividing line between intermediate consumption and capital formation is based on conventions. Thus are included in intermediate consumption : current maintenance of corporation buildings, training of employees, etc.

Breaking down economy into branches of activity

The output analysis is based on the breakdown of economy by grouping all the producers who perform the same kind-of-activity, even if these producers belong to different institutional sectors.

Each institutional unit is divided in homogeneous production units (HPU): an HPU is a unit providing only one product. HPU are then grouped in homogeneous branches.

Grouping output and intermediate consumption of HPU engaged in the same kind-of-activity according to the NACE rev.2 provides output by branch and intermediate consumption by branch. For kind-of-activity branches, only production accounts and generation of income accounts are worked out.

Classsification of economy

The activity classification upon which the beakdown of the economy is made is the Nomenclature d'Activités Française - révision 2 (NAF rév.2) , similar to NACE rev.2.

Items of NAF rev. 2 are grouped within the frame of the aggregate classification 2008 (NA2008). This classification allows grouping at several levels : A10 in 10 items, A17 in 17 items, A21 in 21 items, A38 in 38 items, A64 in 64 items, A88 in 88 items, A129 in 129 items and A138 in 138 items. It provides synthetic data fot economical analysis and publication of national accounts.

Définitions

2008 aggregate classification / NA 2008 :

With the adoption of NAF rev.2 (the revised French classification of activities of January 1st 2008), the composite economic classification (NES) associated with NAF rev.1 disappeared in its previous form. In practice, this strictly French classification scheme did not allow for international comparisons as it did not fit into the general framework provided by the ISIC and NACE systems.

NAF rev.2 includes two aggregate ‘standard’ levels: sections and divisions, containing 21 and 88 items respectively. These levels are common to the ISIC rev. 4 international classification of activities, the European NACE rev.2 classification and NAF rev.2.

It was nonetheless necessary to create some additional grouping levels in order to meet the requirements of economic analysis and publication of composite data.

Seven aggregation levels are therefore associated with NAF rev.2, labelled ‘A xx’, where xx represents the number of items within the level. Together they represent the aggregate classification:

· A 10: international level, grouping of sections;

· A 17: French intermediate level between levels A10 and A38;

At the sections level (A 21), the manufacturing industry covers 5 items and, in contrast, certain service activities are grouped together.

· A 21: sections, standard level of the NAF rev.2 system;

· A 38: international intermediate level between sections and divisions;

· A 64: European level, intermediate between levels A 38 and A 88 (divisions), provisional;

· A 88: divisions, standard level of the NAF rev.2 system;

· A 129: French intermediate level between divisions (level A 88) and groups.

Pour en savoir plus

"Association de comptabilité nationale" and its conferences