Definition: Current operating expenditure

Category: National accounts

Current operating expenditure is a term based on company accounting concepts. It is the sum of all current expenditure relating to operating activities. Using the standard presentation of a profit and loss account laid down in Article 23 of the Fourth Council Directive on the annual accounts of certain types of companies, this is made up of:
- Raw materials and consumables
- Other external charges
- Staff costs
- Value adjustments in respect of formation expenses and of tangible and intangible fixed assets
- Value adjustments in respect of current assets
- Other operating charges
Source:
European Union, Fourth Council Directive 78/660/EEC of 25 July 1978 based on Article 54 (3) (g) of the Treaty on the annual accounts of certain types of companies (Official Journal of the European Communities No L 222, 14/08/1978, p. 11)
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