National accounts definitions
Basic prices
The amounts receivable by producers from purchasers for units of goods or services produced as outputs minus any taxes payable, and plus any subsidies receivable. They exclude any transport charges invoiced separately by the producers.
Change in inventories
The book value change as recorded in most business accounting records, less an inventory valuation adjustment that removes the capital gains and losses that may arise through holding inventories purchased at prices either higher or lower than those ruling during the period of account. Change in inventories effectively values the change in stocks at the average prices for the period.
Compensation of employees
Total remuneration, in cash or in kind, payable by enterprises to employees. Includes contributions paid on employees’ behalf to superannuation funds, private pension schemes, the Accident Compensation Corporation, casualty and life insurance schemes, and other fringe benefits.
Consumption of fixed capital
The reduction in the value of the fixed assets used in production during the accounting period resulting from physical deterioration, normal obsolescence, or accidental damage. It is valued at replacement cost.
Exports of goods and services
All goods and services produced by New Zealand residents and purchased by non-residents.
Gross domestic product (GDP)
The total market value of goods and services produced in New Zealand after deducting the cost of goods and services used in the process of production, but before deducting allowances for the consumption of fixed capital.
Gross fixed capital formation
The total value of a producer’s purchases, less disposals, of durable real assets such as buildings, motor vehicles, plant and machinery, hydro-electric construction, roading, and improvements to land. Land is excluded from gross fixed capital formation. Included is the value of construction work done by a firm’s own employees. The term ‘gross’ indicates that consumption of fixed capital has not been deducted from the value of the outlays.
Gross operating surplus
Output at producer’s values less the sum of intermediate consumption, compensation of employees, and taxes on production and imports net of subsidies. It is approximately equal to accounting profit before the deduction of depreciation, direct taxes, dividends, interest paid and bad debts, and before the addition of interest and dividends received.
GST on production
The transactions of registered producers are recorded excluding goods and services tax (GST), while those of final consumers (including producers of exempt goods and services) are recorded at actual market prices. The potential imbalance between the value of goods and services produced and the value ultimately consumed is removed by including the item ‘GST on production’ in the GDP account. This item produces a measure of the amount of GST included in the valuation of the final demand categories.
Imports of goods and services
All goods and services produced by non-residents and purchased by New Zealand residents.
Intermediate consumption
The value of non-durable goods and services used in production. Valuation is at purchaser’s values.
Net capital stock
The accumulated written-down value of fixed assets valued in current prices. It is equal to accumulated investment less retirements and less accumulated depreciation for assets still operating.
Output
Goods and services produced within an establishment that become available for use outside that establishment, plus any goods and services produced for own final use.
Producer prices
The amount receivable by the producer from the purchaser for a unit of goods or a service produced as output less any deductible taxes invoiced to the purchaser. The producer price excludes any transport charges invoiced separately by the producer.
Purchaser prices (market prices)
The amount paid by the purchaser, exclusive of any deductible taxes, in order to take delivery of goods or services at the time and place required by the purchaser. The purchaser price of goods is inclusive of any transport charges paid separately by the purchaser to take delivery at the required time and place.
Subsidies
Current unrequited payments made by governments to enterprises on the basis of the levels of their production activities or the quantities or values of the goods and services they produce, sell, or import.
Taxes on production and imports
Taxes assessed on producers in respect of the production, sale, purchase, and use of goods and services, and that add to the market prices of those goods and services. Includes sales tax, local authority rates, import and excise duties, fringe benefits tax, and registration fees, such as motor vehicle registration, paid by producers.
Value added
The value added to goods and services by the contributions of capital and labour (that is after the costs of bought-in materials and services have been deducted from the total value of output).
Abbreviations used in this report
AFUS: Annual Frame Update Survey
ANZSCC: Australian and New Zealand Standard Commodity Classification
ANZSIC: Australian and New Zealand Standard Industry Classification
BoP: balance of payments
CPI: consumers price index
DTS: Domestic Travel Survey
GDP: gross domestic product
GST: goods and services tax
HCE: household consumption expenditure
HES: Household Economic Survey
HLFS: Household Labour Force Survey
ISIC: International Standard Industrial Classification
IVS: International Visitors Survey
NZSIC: New Zealand Standard Industry Classification
NZSNA: New Zealand System of National Accounts
QES: Quarterly Employment Survey
OECD: Organisation of Economic Co-operation and Development
SNA93: System of National Accounts 1993
TSA: tourism satellite account
TSA03: New Zealand Tourism Satellite Account 2003
TSA04: New Zealand Tourism Satellite Account 2004
TSA05: New Zealand Tourism Satellite Account 2005
TSA06: New Zealand Tourism Satellite Account 2006
TSA07: New Zealand Tourism Satellite Account: 2007
UNWTO: United Nations World Tourism Organization