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Last modified by Helena on 2025/07/31 14:18
From version 3.9
edited by Helena
on 2025/06/17 11:40
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To version 3.8
edited by Helena
on 2025/06/17 11:40
Change comment: There is no comment for this version

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130 130  
131 131  == Choice of method for recording income related to employment for profit ==
132 132  
133 -31. The choice of an accounting technique to measure income related to employment for profit should take into account the circumstances in which those employed for profit operate their business and the measurement objective. Two major techniques can be used:
133 +1. The choice of an accounting technique to measure income related to employment for profit should take into account the circumstances in which those employed for profit operate their business and the measurement objective. Two major techniques can be used:
134 +11. Accruals accounting, which measures the profit earned during the reference period, by taking into account receipts and expenses relevant to that period, irrespective of whether or not they have actually been received or defrayed. This technique measures the profitability or economic performance of the enterprise and, as such, could be favoured when the objective is to measure the income-generating capacity of jobs for profit. It is also the approach favoured by the SNA.
135 +11. The cash-flow technique, which measures actual cash received (including the value of production for own use) and paid out (including the value of production given out free or at reduced prices) during the reference period. This technique provides a better indicator of the amounts of income actually available to workers in employment for profit to meet living expenses. Where data on employment-related income are furnished by those in employment for profit themselves in the absence of business accounts, it is generally easier for them to provide a simple summary of cash received and paid in the assessment period (i.e. gross receipts minus expenditure).
136 +1. These different techniques may produce different results. In determining the method used to record income related to employment for profit, consideration should be given to the procedures recommended by national tax authorities, the sources of data and the methods of data collection.
134 134  
135 -* (i ) Accruals accounting, which measures the profit earned during the reference period, by taking into account receipts and expenses relevant to that period, irrespective of whether or not they have actually been received or defrayed. This technique measures the profitability or economic performance of the enterprise and, as such, could be favoured when the objective is to measure the income-generating capacity of jobs for profit. It is also the approach favoured by the SNA.
136 -* (ii) The cash-flow technique, which measures actual cash received (including the value of production for own use) and paid out (including the value of production given out free or at reduced prices) during the reference period. This technique provides a better indicator of the amounts of income actually available to workers in employment for profit to meet living expenses. Where data on employment-related income are furnished by those in employment for profit themselves in the absence of business accounts, it is generally easier for them to provide a simple summary of cash received and paid in the assessment period (i.e. gross receipts minus expenditure).
137 -
138 -32. These different techniques may produce different results. In determining the method used to record income related to employment for profit, consideration should be given to the procedures recommended by national tax authorities, the sources of data and the methods of data collection.
139 -
140 140  == Valuation of own production consumed by workers in employment for profit ==
141 141  
142 142  33. The part of goods and services produced and consumed by workers in employment for profit and their family members should be valued in terms of the basic prices of similar products sold on the market or of their cost of production if no suitable basic prices are available, as defined in the SNA. In the absence of these prices, retail market prices could be used. Such consumption of own production is similar to payments in kind received by workers in employment for pay.