Definition: Valuation of output

Category: National accounts

Output is to be valued at the basic price. The basic price is the price receivable by the producers from the purchaser for a unit of a good or service produced as output minus any tax payable on that unit as a consequence of its production or sale (i.e. taxes on products) plus any subsidy receivable on that unit as a consequence of its production or sale (i.e. subsidies on products). The basic price excludes any transport charges invoiced separately by the producer. However, it includes any transport margins charged by the producer on the same invoice, even if they are included as a separate item on the invoice (cf. ESA 95, 3.48.).
Components of output such as sales, payments in kind, additions to stocks and intra-unit consumed products should be valued at the basic price. Similarly, output for own final use (i.e. own-account fixed capital goods and own final consumption) should be valued at the basic price of similar products sold on the market. Work-in-progress and additions to it are valued proportionally to the current basic price of the finished product. If the latter has to be assessed in advance, the calculation should be based on the actual costs incurred plus an amount corresponding to the anticipated operating surplus or mixed income. http://ec.europa.eu/eurostat/ramon/statmanuals/files/KS-27-00-782-__-I-EN.pdf