International Recommendations for Industrial Statistics (IRIS) Workshop on Economic Statistics and...

International Recommendations International Recommendations for Industrial Statistics (IRIS)for Industrial Statistics (IRIS)

Workshop on Economic Statistics Workshop on Economic Statistics

and Informal Sectorand Informal SectorUN Statistics Division/ESCAPUN Statistics Division/ESCAP

Teheran, 10-13 November 2007Teheran, 10-13 November 2007

International Recommendations for International Recommendations for Industrial Statistics (IRIS)Industrial Statistics (IRIS)

Outline of presentationOutline of presentation1. Background 1. Background

2. Need for revision of IRIS2. Need for revision of IRIS

3. Main recommendations3. Main recommendationsa. Scope and coveragea. Scope and coverage

b. Statistical unitsb. Statistical units

c. Treatment of ancillary activitiesc. Treatment of ancillary activities

d. Data itemsd. Data items

e. Valuatione. Valuation

f. Data items for international reportingf. Data items for international reporting AnnualAnnual QuarterlyQuarterly

1. Background1. Background

Since 1950s, UN has published international Since 1950s, UN has published international recommendations – to establish a coherent recommendations – to establish a coherent and uniform measurement of industrial and uniform measurement of industrial activities – 1953, 1960, 1968 and 1983activities – 1953, 1960, 1968 and 1983

UNSC in 2006 reviewed the industrial UNSC in 2006 reviewed the industrial statistics and endorsed the proposal for statistics and endorsed the proposal for revision of IRIS.revision of IRIS.

Expert Group Constituted to guide the Expert Group Constituted to guide the revision which met in revision which met in

Sept 2005 – considered proposals for revision and Sept 2005 – considered proposals for revision and July 2007 – considered the draft IRISJuly 2007 – considered the draft IRIS

2. Need for revision2. Need for revision

Some important factors which necessitated revision are:Some important factors which necessitated revision are: 1993 SNA update1993 SNA update

• Units undertaking ancillary activities treated as a separate Units undertaking ancillary activities treated as a separate establishment in some specific circumstances,establishment in some specific circumstances,

• Additional element for the measure of COE like ‘employees Additional element for the measure of COE like ‘employees stock option’stock option’

• Treatment of goods sent abroad for processing,Treatment of goods sent abroad for processing,• Changes in terminology and classification of assets,Changes in terminology and classification of assets,• Capitalisation of database development, and capitalisation Capitalisation of database development, and capitalisation

of R&D expendituresof R&D expenditures

Revision of International Standard Industrial Revision of International Standard Industrial Classification of all economic activities (ISIC Rev. 4) and Classification of all economic activities (ISIC Rev. 4) and Central Product Classification (CPC Ver. 2).Central Product Classification (CPC Ver. 2).

Consistency with changes in concepts, definition and Consistency with changes in concepts, definition and terminology in publications and regulations of other terminology in publications and regulations of other international organisations. For example, revision in the international organisations. For example, revision in the IMF manual on BOP, EU regulations on statistical units, IMF manual on BOP, EU regulations on statistical units, structural business statistics etc. structural business statistics etc.

2. Need for revision2. Need for revision Cont. Cont.

Inclusion of aspects of globalisation of the Inclusion of aspects of globalisation of the industrial production process including industrial production process including ‘outsourcing’ and use of e-ecommerce‘outsourcing’ and use of e-ecommerce,,

Efforts of countries to minimise the Efforts of countries to minimise the differences between the concepts of differences between the concepts of ‘census value added’ and ‘national ‘census value added’ and ‘national account value added’,account value added’,

Change in valuation of industrial output to Change in valuation of industrial output to basic prices in accordance with the SNA basic prices in accordance with the SNA valuation principle,valuation principle,

2. Need for revision2. Need for revision Cont. Cont.

Extension of the link between the economy Extension of the link between the economy and the environment by extending the and the environment by extending the coverage of the data items to include the use coverage of the data items to include the use of natural resources like energy, water, of natural resources like energy, water, mineral, generation of solid waste and waste mineral, generation of solid waste and waste water and by-products,water and by-products,

Experience of countries both in developing an Experience of countries both in developing an industrial statistics system and conducting industrial statistics system and conducting an integrated system of annual and infra-an integrated system of annual and infra-annual industrial inquiries adapted to the annual industrial inquiries adapted to the needs of NA and the measurement of needs of NA and the measurement of industrial sector for the economy as a wholeindustrial sector for the economy as a whole

3a. Scope of industrial sector3a. Scope of industrial sector

Economic activities included in terms of ISIC Economic activities included in terms of ISIC Rev. 4 are:Rev. 4 are:• Mining and quarrying (section B)Mining and quarrying (section B)• Manufacturing (section C)Manufacturing (section C)• Electricity, gas, steam and air conditioning supply Electricity, gas, steam and air conditioning supply

(section D), and(section D), and• Water supply; sewerage, waste management and Water supply; sewerage, waste management and

remediation activities (section E)remediation activities (section E) (Scope has been broadened as compared to the 1983 (Scope has been broadened as compared to the 1983

recommendations with inclusion of sewerage, waste recommendations with inclusion of sewerage, waste management and remediation activities)management and remediation activities)

Industrial activities in international waters, Industrial activities in international waters, such as the operation of petroleum and such as the operation of petroleum and natural gas wells, should be included if these natural gas wells, should be included if these activities are subject to the laws, regulations activities are subject to the laws, regulations and control of the country concerned.and control of the country concerned.

3a. Scope of Manufacturing3a. Scope of Manufacturing

Manufacturing Manufacturing Includes the physical or chemical Includes the physical or chemical

transformation of materials, substances, or transformation of materials, substances, or components into new products. components into new products.

Substantial alteration, renovation or Substantial alteration, renovation or reconstruction of goods is generally reconstruction of goods is generally considered to be manufacturingconsidered to be manufacturing..

Assembly of the component parts of Assembly of the component parts of manufactured products is considered manufactured products is considered manufacturing. This includes the assembly manufacturing. This includes the assembly of manufactured products from either self-of manufactured products from either self-produced or purchased componentsproduced or purchased components


Manufacturing Manufacturing Specialized maintenance and repair of Specialized maintenance and repair of

industrial, commercial and similar industrial, commercial and similar machinery and equipment is included in machinery and equipment is included in manufacturing. However, the repair of manufacturing. However, the repair of computers and personal and household computers and personal and household goods and the repair of motor vehicles are goods and the repair of motor vehicles are not included in this section.not included in this section.

The recovery of waste - the processing of The recovery of waste - the processing of waste into secondary raw materials - though waste into secondary raw materials - though may involve, physical or chemical may involve, physical or chemical transformations, is not considered to be a transformations, is not considered to be a part of manufacturing.part of manufacturing.


Manufacturing Manufacturing The boundaries of manufacturing and the other The boundaries of manufacturing and the other

activities can be somewhat blurry. As a general rule, activities can be somewhat blurry. As a general rule, the activities in the manufacturing section involve the the activities in the manufacturing section involve the transformation of materials into new products.transformation of materials into new products.

Some activities, although sometimes involving Some activities, although sometimes involving transformation processes, are not classified as transformation processes, are not classified as manufacturing. They include:manufacturing. They include:• Logging - classified in Section A (Ag, forestry & fishing)Logging - classified in Section A (Ag, forestry & fishing)• Construction of structures and fabricating operations Construction of structures and fabricating operations

performed at the site of construction - classified in section F performed at the site of construction - classified in section F (construction)(construction)

• Activities of breaking bulk and redistribution in smaller lots, Activities of breaking bulk and redistribution in smaller lots, including packaging, repackaging, or bottling products; mixing including packaging, repackaging, or bottling products; mixing paints to customer order; and cutting metals to customer paints to customer order; and cutting metals to customer order, produce a modified version of the same product are order, produce a modified version of the same product are classified to section G (wholesale and retail trade; repair of classified to section G (wholesale and retail trade; repair of motor vehicles and motorcyclesmotor vehicles and motorcycles

Boundary between Mfg and WholesalingBoundary between Mfg and Wholesaling

OutsourcingOutsourcing Principal unit (principal) contracts another Principal unit (principal) contracts another

production unit (contractor) to carry out production unit (contractor) to carry out specific aspects of the production activity of specific aspects of the production activity of the principal, in whole or in part in the the principal, in whole or in part in the production of a good or a serviceproduction of a good or a service. .

It should be noted that the activity It should be noted that the activity classification of the contractor does not classification of the contractor does not change with the outsourcing but that of the change with the outsourcing but that of the principal is very much affected by the nature principal is very much affected by the nature and extent of the outsourcingand extent of the outsourcing


Trend of outsourcing the mfg Trend of outsourcing the mfg activities has been growing recently. activities has been growing recently. Criteria for the classification of the Criteria for the classification of the principal need to be clarified to principal need to be clarified to ensure international consistency in its ensure international consistency in its classification. classification.

Classification of the principal should Classification of the principal should be based on its ownership of the be based on its ownership of the physical input materialsphysical input materials


1.1. Outsourcing of support functions Outsourcing of support functions

• Principal carries out the core production Principal carries out the core production process but outsource certain support process but outsource certain support functions, such as accounting or computer functions, such as accounting or computer services, to the contractor. services, to the contractor. • In such a case, the In such a case, the principalprincipal remains classified remains classified

to the same ISIC class that represents its core to the same ISIC class that represents its core production process. production process.

• The The contractorcontractor is classified to the specific is classified to the specific support activity it is carrying out, e.g. ISIC class support activity it is carrying out, e.g. ISIC class 6920 (Accounting, bookkeeping and auditing 6920 (Accounting, bookkeeping and auditing activities; tax consultancy) or 6202 (Computer activities; tax consultancy) or 6202 (Computer consultancy and computer facilities consultancy and computer facilities management).management).


2.2. Outsourcing of part of the production Outsourcing of part of the production processprocess

• The principal outsources a part of the The principal outsources a part of the production process to the contractorproduction process to the contractor..

• The principal owns the (material) inputs to be The principal owns the (material) inputs to be transformed by the contractor and thereby has transformed by the contractor and thereby has ownership over the final outputs. ownership over the final outputs. • The The principal principal is to be classified as if it were carrying out is to be classified as if it were carrying out

the complete production process.the complete production process.

• The The contractorcontractor is classified according to the portion of the is classified according to the portion of the production process that it is undertaking. In case of the production process that it is undertaking. In case of the transformation of a good, the contractor is classified in the transformation of a good, the contractor is classified in the same or separate ISIC categorysame or separate ISIC category. .


2.2. Outsourcing of the complete production Outsourcing of the complete production processprocess

Outsourcing of mfg activities to contractor Outsourcing of mfg activities to contractor whereby the principal does not physically whereby the principal does not physically transform the goods at the location of its unit:transform the goods at the location of its unit:

(a)(a) Principal Principal owns the material inputsowns the material inputs and has and has economic ownership of the outputs, economic ownership of the outputs, • PrincipalPrincipal is classified to section C (manufacturing), is classified to section C (manufacturing),

specifically to the classification category that corresponds specifically to the classification category that corresponds to the complete (outsourced) manufacturing activity.to the complete (outsourced) manufacturing activity.

• ContractorContractor is classified to section C (manufacturing), is classified to section C (manufacturing), specifically to the classification category that corresponds specifically to the classification category that corresponds to the mfg activity performed by the contractor.to the mfg activity performed by the contractor.


2.2. Outsourcing of the complete Outsourcing of the complete production processproduction process

Outsourcing of mfg activities to contractor Outsourcing of mfg activities to contractor whereby the principal does not physically whereby the principal does not physically transform the goods at the location of its unit:transform the goods at the location of its unit:

(b)(b) Principal has the production done by others, but Principal has the production done by others, but does not own the material inputsdoes not own the material inputs, , • PrincipalPrincipal is classified to section G (wholesale and retail is classified to section G (wholesale and retail

trade; repair of motor vehicles and motorcycles)trade; repair of motor vehicles and motorcycles) ..

• ContractorContractor is classified to section C (manufacturing), is classified to section C (manufacturing), specifically to the classification category that corresponds specifically to the classification category that corresponds to the mfg activity performed by the contractor.to the mfg activity performed by the contractor.

3a. Coverage of industrial activities3a. Coverage of industrial activities

In conformity with the 1993 SNA In conformity with the 1993 SNA production boundary all units production boundary all units engaged in economic activities engaged in economic activities within the scope should be coveredwithin the scope should be covered..

Units of Units of all sizesall sizes (with and without fixed (with and without fixed locations) and locations) and

Units of all types of ownership including Units of all types of ownership including the govt. and household unitsthe govt. and household units

Household unincorporated enterprises Household unincorporated enterprises

Goods produced by households engaging in Goods produced by households engaging in industrial activities for own consumption industrial activities for own consumption should also be covered.should also be covered.

3a. 3a. Coverage of industrial sectorCoverage of industrial sector cont.cont.

Departments, establishments and similar Departments, establishments and similar units in general Govt. should be included if units in general Govt. should be included if they are mainly engaged in production of they are mainly engaged in production of goods and services within the scope and goods and services within the scope and identifiable by accounting records kept by identifiable by accounting records kept by them. them.

Some of units may not be operating for profit, orSome of units may not be operating for profit, or May not dispose of their output in the market. Produce May not dispose of their output in the market. Produce

of such units may be sold at prices below cost of of such units may be sold at prices below cost of production because of govt policy.production because of govt policy.

• Govt. units may furnish goods and services to itself of a Govt. units may furnish goods and services to itself of a kind provided by privately owned establishments – printing kind provided by privately owned establishments – printing and publishing services, ammunitions, etc.and publishing services, ammunitions, etc.

All types of units not necessarily covered through All types of units not necessarily covered through the same survey instrument.the same survey instrument.

3a. 3a. Coverage of industrial sectorCoverage of industrial sector cont.cont.

Actual enumeration of establishments in the Actual enumeration of establishments in the various activities will in practice vary various activities will in practice vary according to the according to the

Frequency with which the data are requiredFrequency with which the data are required Difficulty of obtaining them, Difficulty of obtaining them, Existence of alternative sources and the Existence of alternative sources and the

resources available to the statistical resources available to the statistical authorities. authorities.

Recommended coverage may be attained by Recommended coverage may be attained by a complete enumeration of relevant a complete enumeration of relevant establishments or by using sample surveys. establishments or by using sample surveys.

The method of enumeration chosen will depend on The method of enumeration chosen will depend on the circumstances in each country. the circumstances in each country.

3b. 3b. Statistical unitStatistical unit

1993 SNA 1993 SNA recommends establishment as the most recommends establishment as the most appropriate statistical unit (SU) for production and appropriate statistical unit (SU) for production and employment dataemployment data• Countries are encouraged to use establishment as a SU Countries are encouraged to use establishment as a SU

for industrial statisticsfor industrial statistics

Choice of establishment vs enterprise as SU reflects Choice of establishment vs enterprise as SU reflects balancing of data availability against homogeneity of balancing of data availability against homogeneity of economic activity.economic activity.• Using establishment as a unit enablesUsing establishment as a unit enables

Homogeneity in the measurement of the economic activityHomogeneity in the measurement of the economic activity More accurate presentation of regional economic realityMore accurate presentation of regional economic reality

Choice of SU may be guided by factors such as purpose of Choice of SU may be guided by factors such as purpose of study, the availability and quality of requisite data, study, the availability and quality of requisite data, therefore, enterprise can also be used as SUtherefore, enterprise can also be used as SU

In majority of cases establishment and the enterprise are In majority of cases establishment and the enterprise are same except in case of multi-establishment enterprises.same except in case of multi-establishment enterprises.

3c. Treatment of 3c. Treatment of Ancillary activitiesAncillary activities

A productive activity undertaken with the sole A productive activity undertaken with the sole purpose of producing services for intermediate purpose of producing services for intermediate consumption within the same enterprise is consumption within the same enterprise is defined as an ancillary activity. Examples are defined as an ancillary activity. Examples are record keeping, personnel management, record keeping, personnel management, warehousing etcwarehousing etc

Ancillary activities are integrated with the Ancillary activities are integrated with the establishments they support. This approach depicts establishments they support. This approach depicts the production process as it is performed but has the the production process as it is performed but has the following disadvantagesfollowing disadvantages • Not recognized by its own activity, structural decomposition Not recognized by its own activity, structural decomposition

of GDP by economic activities not depicted correctly, andof GDP by economic activities not depicted correctly, and

• Regional GDP can not be compiled accurately when the Regional GDP can not be compiled accurately when the ancillary unit and the establishments it serves are located in ancillary unit and the establishments it serves are located in different regional economiesdifferent regional economies

3c. Treatment of 3c. Treatment of Ancillary activitiesAncillary activities cont.cont.

Units undertaking ancillary activities to be Units undertaking ancillary activities to be treated as an establishment in certain casestreated as an establishment in certain cases

Enterprise in which different kinds of activities Enterprise in which different kinds of activities undertaken by it or either horizontally or vertically undertaken by it or either horizontally or vertically integrated;integrated;

When an establishment undertaking ancillary When an establishment undertaking ancillary activities is statistically observable, i.e. records of activities is statistically observable, i.e. records of its transactions are readily available, andits transactions are readily available, and

When the ancillary units are in a geographical When the ancillary units are in a geographical location different from the establishments they location different from the establishments they serve.serve.

Such an establishment should be classified Such an establishment should be classified according to its own principal activity.according to its own principal activity.

3c. Treatment of 3c. Treatment of Ancillary activitiesAncillary activities cont. cont.

Output of ancillary establishmentOutput of ancillary establishment Output of ancillary establishment should be Output of ancillary establishment should be

derived on derived on sum of cost basissum of cost basis i.e. all costs of its i.e. all costs of its production including the cost of the capital used.production including the cost of the capital used.

Output deemed to be market output when the Output deemed to be market output when the parent enterprise is a market enterprise and non-parent enterprise is a market enterprise and non-market otherwise.market otherwise.

Output of the ancillary unit is treated as Output of the ancillary unit is treated as intermediate consumption of the establishments it intermediate consumption of the establishments it serves and should be allocated to them using an serves and should be allocated to them using an appropriate indicator such as their value added, appropriate indicator such as their value added, output or employment.output or employment.

3d. 3d. Data itemsData items

Characteristics of statistical unitsCharacteristics of statistical units• LocationLocation

• Type of economic organisationType of economic organisation

• Type of legal organisation and ownershipType of legal organisation and ownership

• Size (in terms of persons employed)Size (in terms of persons employed)Recommended size classes: (1-9, 10-19, 20-49, 50-Recommended size classes: (1-9, 10-19, 20-49, 50-

249, 250249, 250++))• Kind-of-activityKind-of-activity

• Type of unitType of unit

• Period of operationPeriod of operation

3d. Data items3d. Data items cont. cont.

Employment (by gender)Employment (by gender)• No. of persons employed No. of persons employed

Working proprietors, Unpaid FW, employeesWorking proprietors, Unpaid FW, employees Employees engaged in own-account Employees engaged in own-account

production of intellectual property productsproduction of intellectual property products (software & database, R&D, mineral (software & database, R&D, mineral exploration and evaluation, entertainment, exploration and evaluation, entertainment, literary and artistic originals)literary and artistic originals)

Employees engaged in own account fixed Employees engaged in own account fixed asset formation and construction)asset formation and construction)

• Average number of persons employedAverage number of persons employed• Hours workedHours worked• Leased employeesLeased employees


Compensation of employees in cash and in kindCompensation of employees in cash and in kindAdditional element pursuant to 1993 SNA revisionAdditional element pursuant to 1993 SNA revision Stock options (income in kind)Stock options (income in kind)

• Employer giving employee an option to buy stocks (shares) Employer giving employee an option to buy stocks (shares) at some future date at a given price (strike/exercise price) at some future date at a given price (strike/exercise price) subject to certain conditions (employee is still on the subject to certain conditions (employee is still on the enterprise pay roll).enterprise pay roll).

• Employee may not exercise the option:Employee may not exercise the option:• Share price is now lower than his option priceShare price is now lower than his option price• No longer in the employment of the companyNo longer in the employment of the company

• The ‘grant date’ is when the option is provided, the The ‘grant date’ is when the option is provided, the ‘vesting date’ is the earliest date when the option can be ‘vesting date’ is the earliest date when the option can be exercised (or lapses)exercised (or lapses)

• Value of the stock option may be estimated as the Value of the stock option may be estimated as the difference between the market price and the stock price at difference between the market price and the stock price at vesting date or using using a stock option pricing model.vesting date or using using a stock option pricing model.


Other expendituresOther expenditures Cost of material, parts and supplies except gas, Cost of material, parts and supplies except gas,

fuels and electricity fuels and electricity (purchased form other enterprises and (purchased form other enterprises and delivered by the other establishments of the same enterprise)delivered by the other establishments of the same enterprise)

Cost of gas, fuels and electricity purchasedCost of gas, fuels and electricity purchased Cost of water and sewerage services Cost of water and sewerage services Purchase of services except rentalPurchase of services except rental

• Cost of industrial services purchased and also delivered by Cost of industrial services purchased and also delivered by other establishments of the same enterpriseother establishments of the same enterprise

• Cost of non-industrial services purchased and also Cost of non-industrial services purchased and also delivered by other establishments of the same enterprisedelivered by other establishments of the same enterprise

Purchase of goods and services for resale in the Purchase of goods and services for resale in the same condition as receivedsame condition as received

Rental paymentsRental payments Non-life insurance premiums payable on Non-life insurance premiums payable on

establishment propertyestablishment property


Data items on QuantityData items on Quantity• Quantity of individually important materials and Quantity of individually important materials and

supplies supplies • Quantity of gas, fuels purchasedQuantity of gas, fuels purchased Quantity of electricity (Kwh)Quantity of electricity (Kwh)

Purchased Purchased GeneratedGenerated SoldSold

Total energy consumed (tera joules)*Total energy consumed (tera joules)* Cost of water Cost of water

PurchasedPurchased Abstracted for own useAbstracted for own use SoldSold

Total water usedTotal water used Quantity of waste waterQuantity of waste water

Treated on site prior to dischargeTreated on site prior to discharge Discharged without being treatedDischarged without being treated


Sales/shipments and other revenues Sales/shipments and other revenues Sales/shipment of goods produced Sales/shipment of goods produced

Sales/shipment of goods and services purchased for Sales/shipment of goods and services purchased for resale in the same condition as receivedresale in the same condition as received

Receipts for industrial work doneReceipts for industrial work done

Other receiptsOther receipts Value of own account fixed assets*Value of own account fixed assets* E-commerce sale/value of shipment/receipt for E-commerce sale/value of shipment/receipt for

services and other revenuesservices and other revenues

QuantityQuantity Quantity of individually important productsQuantity of individually important products (UN list of Industrial Products)(UN list of Industrial Products)


InventoriesInventoriesCapital formation Capital formation DwellingsDwellings Other buildings and structuresOther buildings and structures Machinery and equipmentMachinery and equipment

• Transport equipmentTransport equipment• ICT equipmentICT equipment• Other machinery and equipmentOther machinery and equipment

Intellectual property productsIntellectual property products• Computer software and databaseComputer software and database• R&DR&D• Mineral exploration and evaluationMineral exploration and evaluation• Entertainment, literary and artistic originalsEntertainment, literary and artistic originals• OthersOthers

OrdersOrders New ordersNew orders received received Unfilled orders during the reference periodUnfilled orders during the reference period Environmental protection expendituresEnvironmental protection expenditures


Environmental protection expendituresEnvironmental protection expenditures• Environmental protection groups together all actions Environmental protection groups together all actions

and activities that are aimed at the prevention, and activities that are aimed at the prevention, reduction and elimination of pollution as well as any reduction and elimination of pollution as well as any other degradation of the environment. This includes other degradation of the environment. This includes measures taken in order to restore the environment measures taken in order to restore the environment after it has been degraded due to the pressures from after it has been degraded due to the pressures from human activitieshuman activities

As environmental protection is prime objective, As environmental protection is prime objective, actions and activities which have a favourable impact actions and activities which have a favourable impact on the environment but which serve other goals do on the environment but which serve other goals do not come under environmental protection. not come under environmental protection.

Excluded are activities from field of environmental Excluded are activities from field of environmental protection, which while beneficial to environment protection, which while beneficial to environment primarily satisfy technical needs or the internal primarily satisfy technical needs or the internal requirements for hygiene or security of an enterprise.requirements for hygiene or security of an enterprise.

3e. Valuation3e. Valuation

Value added at basic pricesValue added at basic prices (preferred) (preferred)

Situations where it is difficult to Situations where it is difficult to segregate taxes and subsidies on segregate taxes and subsidies on products and production - Value added products and production - Value added at factor cost (second best option)at factor cost (second best option)

Total value added vs Census value addedTotal value added vs Census value added

National account value added (total National account value added (total value added) recommended.value added) recommended.

Census vale added optional - if countries Census vale added optional - if countries desire to maintain their earlier time seriesdesire to maintain their earlier time series

3f. Data items for 3f. Data items for International ReportingInternational Reporting Annual statisticsAnnual statistics

Data item Level of details

Reporting level(in terms ofISIC Rev. 4)

Time-lagAfter close

of yr

Demography

Number of enterprises

By economic activity and size class

3-digit by economic activity

1-digit level for size class distribution

18 months

Employment

Total number of persons employed

--do-- ----do--- 18 months

Total number of employees

--do-- ---do--- 18 months

3f. Data items for 3f. Data items for International International ReportingReporting

Annual statisticsAnnual statisticsData item Level of

detailsReporting

levelTime-lag

Compensation of employees

Wages and salaries in cash and in kind of employees

By economic activity

3-digit level of ISIC, Rev.4

18 months

Output

Gross output at basic prices



18 months

Value added

Total value added at basic prices



18 months

Gross fixed capital formation 18 months

3f. Data items for 3f. Data items for International International ReportingReporting

Annual statisticsAnnual statisticsData item Level of

detailsReporting

levelTime-

lagEnvironment

Environmental protection expenditure



18 months

Total energy consumed(terajoules)



18 months

Total water used(cubic meters)



18 months

3f. Data items for 3f. Data items for International ReportingInternational Reporting Quarterly statisticsQuarterly statistics

Data item Level of details

Reporting level

Time-lag

Employment

Total number of persons employed



3 months

Total number of employees



3 months

Compensation of employees

Wages and salaries in cash and in kind of employees



3 months

OrdersNew orders received --- do --- - -- do ---Unfilled orders --- do --- --- do ---

3 months3 months

Index of industrial production 2-digit level 3 months

Two basic sources for economic dataTwo basic sources for economic data(a) Administrative sources:(a) Administrative sources: Administrative processes Administrative processes

are set up in response to legislation and regulation. Each are set up in response to legislation and regulation. Each regulation results in a register of the institutional units – regulation results in a register of the institutional units – enterprises, persons, etc. – bound by that regulation and in enterprises, persons, etc. – bound by that regulation and in data resulting from application of the regulation. The data resulting from application of the regulation. The register and data are referred to collectively by the register and data are referred to collectively by the statistical office as an statistical office as an administrative sourceadministrative source

Main advantages of the administrative sourceMain advantages of the administrative source• Complete coverage of the concerned population;Complete coverage of the concerned population;• Avoidance of response burden: the responding units Avoidance of response burden: the responding units

make available the information as part of the make available the information as part of the administrative procedure;administrative procedure;

• Cheaper for the statistical office to acquire data from Cheaper for the statistical office to acquire data from an administrative source than to conduct a survey;an administrative source than to conduct a survey;

• Negligible non-response;Negligible non-response;• No sampling errors; andNo sampling errors; and• Data reported may be more accurate because of Data reported may be more accurate because of

intense data checks by administrative authoritiesintense data checks by administrative authorities..

Data SourcesData Sources

Main disadvantages of the administrative sourceMain disadvantages of the administrative source

Discrepancy between administrative and statistical Discrepancy between administrative and statistical concepts,concepts,

Poor integration with other data of the statistical Poor integration with other data of the statistical systems. AUs do not correspond to SUs; even if does systems. AUs do not correspond to SUs; even if does matching problem can prevent from using them.matching problem can prevent from using them.

Risks with respect to stability: Administrative processes Risks with respect to stability: Administrative processes are subject to change in response to new legislation - may are subject to change in response to new legislation - may cause systematic bias.cause systematic bias.

Data may become available with unacceptable delayData may become available with unacceptable delay

Legal constraints with respect to access and Legal constraints with respect to access and confidentialityconfidentiality

Privately controlled administrative data sources – Privately controlled administrative data sources – can serve can serve as an important supplement to official statistics – should as an important supplement to official statistics – should be thoroughly checked for coverage and quality and be thoroughly checked for coverage and quality and considered for use only when found to be of acceptable considered for use only when found to be of acceptable quality.quality.

Data Sources contd.Data Sources contd.

(b) Statistical surveys(b) Statistical surveys Both, the census and the sample survey Both, the census and the sample survey

techniques are used for collecting economic techniques are used for collecting economic data. data.

Sample survey is less costly way of data Sample survey is less costly way of data collection of precision with high frequencycollection of precision with high frequency

Disadvantages of survey approachDisadvantages of survey approach Resource intensive (both financial and Resource intensive (both financial and

manpower), manpower), Additional respondent burden, Additional respondent burden, Higher non-response rates and sampling errors.Higher non-response rates and sampling errors. Respondents may not trust the confidentiality Respondents may not trust the confidentiality

clause.clause.


Two types surveysTwo types surveys(i) Enterprise Survey(i) Enterprise Survey Sampling frame of enterprises engaged in Sampling frame of enterprises engaged in

relevant economic activities – from current up-to-relevant economic activities – from current up-to-date BR, is a prerequisitedate BR, is a prerequisite

For countries with no BR, list of enterprises For countries with no BR, list of enterprises drawn from EC conducted in the past drawn from EC conducted in the past

Depending upon the source of the sampling Depending upon the source of the sampling frame surveys may also be classified as either frame surveys may also be classified as either list-based list-based or or area-based.area-based. • In list-based survey the initial sample is selected from a In list-based survey the initial sample is selected from a

pre-existing list of enterprises, pre-existing list of enterprises,

• In an area-based surveyIn an area-based survey the initial sampling units are a the initial sampling units are a set of geographical areas. After one or more stages of set of geographical areas. After one or more stages of selection, a sample of areas is identified within which selection, a sample of areas is identified within which enterprises or households are listed. From this list, the enterprises or households are listed. From this list, the sample is selected and data collected.sample is selected and data collected.


Two types surveysTwo types surveysMixed household-enterprise surveysMixed household-enterprise surveys Sample of households is selected Sample of households is selected

Each household is asked whether any of its Each household is asked whether any of its members own and operate an unincorporated members own and operate an unincorporated enterprise.enterprise.

The list of enterprises thus compiled is used as The list of enterprises thus compiled is used as the basis for selecting the enterprises from which the basis for selecting the enterprises from which desired data are finally collected. desired data are finally collected.

Mixed household-enterprise surveys are useful to Mixed household-enterprise surveys are useful to cover only unincorporated (or household) cover only unincorporated (or household) enterprises which are numerous and cannot be enterprises which are numerous and cannot be easily registered.easily registered.


For complete coverage of the industrial activity, data For complete coverage of the industrial activity, data collection strategy should be based on an integrated collection strategy should be based on an integrated approach covering in principle all production units across approach covering in principle all production units across all class sizes including micro and small enterprises.all class sizes including micro and small enterprises.

The legal organisation (incorporated or unincorporated), The legal organisation (incorporated or unincorporated), size (from large to small and micro enterprises) and the size (from large to small and micro enterprises) and the ownership pattern (public sector, privately owned and ownership pattern (public sector, privately owned and foreign controlled) of units within the scope of the foreign controlled) of units within the scope of the industrial statistics differ significantly.industrial statistics differ significantly.

• At one end of the spectrum are the corporate units which are At one end of the spectrum are the corporate units which are incorporated under the statute of a country and are incorporated under the statute of a country and are comparatively large, while at the other end are the comparatively large, while at the other end are the unincorporated enterprises characterised by low level of unincorporated enterprises characterised by low level of organisation. organisation.

In view of this diversity, it is difficult, if not impossible, to In view of this diversity, it is difficult, if not impossible, to devise a single strategy for data collection that is devise a single strategy for data collection that is appropriate for all units in the scope. appropriate for all units in the scope.

Data Collection strategyData Collection strategy

Incorporated units - popularly known as Incorporated units - popularly known as companies, a list of such units is always companies, a list of such units is always available.available.

Public sector enterprises – Complete Public sector enterprises – Complete enumerationenumeration

The coverage of the private and foreign The coverage of the private and foreign controlled incorporated enterprises should controlled incorporated enterprises should be achieved by dividing them into two be achieved by dividing them into two segments – segments – • large-scale units – complete enumeration, and large-scale units – complete enumeration, and • the rest – cover through sample surveythe rest – cover through sample survey

Data Collection strategyData Collection strategy

Data collection strategyData collection strategy

Universe of units engaged in industrial activitiesUniverse of units engaged in industrial activities

In BR In BR (list-frame segment)(list-frame segment)

Not in BRNot in BR(Non-list frame Segment)(Non-list frame Segment)

Without Fixed Without Fixed PremisesPremises

With fixed With fixed premisespremises

Area frameArea frame

Should be covered throughShould be covered throughSample surveysSample surveys

Small unitsSmall units

Covered eitherCovered eitherThrough Through samplesample

Surveys orSurveys orAdministrativeAdministrative

datadata

11

22

Large unitsLarge units

PrivatePrivateSectorSector

Public sectorPublic sector

Segment 1: Segment 1: Large units should be Large units should be

covered on a complete covered on a complete enumeration basisenumeration basis

CompleteCompleteenumerationenumeration

Segment 2:Segment 2:Remaining through Remaining through

sample surveyssample surveys

1. All units on the business register are excluded from the area frame (i.e. non-list frame segment).1. All units on the business register are excluded from the area frame (i.e. non-list frame segment).2. All units in the sample that are part of a list frame segment and included therein are excluded from the sample of2. All units in the sample that are part of a list frame segment and included therein are excluded from the sample of non-list frame segment.non-list frame segment.

Thank YouThank You

International Recommendations for Industrial Statistics (IRIS) Workshop on Economic Statistics and...

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