Commission Delegated Regulation (EU) 2019/280 of 3 December 2018 amending Regulation (EC) No 138/2004 of the European Parliament and of the Council as regards references to the European system of national and regional accounts in the European Union (Text with EEA relevance.)

• ‘3.077. Interest receivable in connection with agricultural activities by units belonging to corporate agricultural enterprises should also be recorded. Interest receivable by individual enterprises is excluded from the measure of entrepreneurial income of the agricultural industry, since it was felt that the majority of interest-bearing assets are not linked to the agricultural activity of the units and because it is very difficult to distinguish family assets from assets used in production[^ntr*7-L_2019047EN.01000801-E0007].

[^ntr*7-L_2019047EN.01000801-E0007]: Interest receivable corresponds to “Other accounts receivable” (F.8) in the financial account.’;"

• (mm) in paragraph 3.079 the last sentence is replaced by the following:

‘The costs are regarded as remuneration for services rendered by financial intermediaries to their clients and not as an interest payment (see 2.107.1 and 2.108(i); ESA 2010, 4.51).’;

• (nn) subheading ‘3. Rents (on land and subsoil assets)’ is replaced by the following:

‘3.   Rents (on land and subsoil assets)

(ESA 2010, 4.72 – 4.76)’;

• (oo) in paragraph 3.080 the first sentence is replaced by the following:

‘Rents correspond to payments made to the owner of non-produced tangible assets (land and subsoil assets) in return for making assets available to another unit.’;

• (pp) in paragraph 3.082 the last sentence is replaced by the following:

‘This rule is an adapted version of the ESA recommendation (cf. ESA 2010, 4.73) (²).’;

• (qq) subheading ‘4. Property income attributed’ is replaced by the following:

‘4.   Investment income attributable to insurance policy holders (not covered by the EAA)’;

• (rr) in paragraph 3.086 the first sentence is replaced by the following:

‘Investment income attributable to insurance policy holders corresponds to total primary incomes received from the investment of insurance technical reserves and pension funds (cf. ESA 2010, 4.68).’;

• (ss) in paragraph 3.087 the first sentence is replaced by the following:

‘Investment income attributable to insurance policy holders is not covered by the EAA.’;

• (tt) in the heading of part G ‘(cf. ESA 95, 4.145 to 4.167)’ is replaced by the following:

‘(cf. ESA 2010, 4.145 to 4.167)’;

• (uu) paragraph 3.089 is replaced by the following:

• ‘3.089. Investment grants are capital transfers, in cash or kind, effected by general government or the rest of the world to other resident or non-resident institutional units with the aim of financing, in part or in full, the cost of acquiring fixed capital goods (cf. ESA 2010, 4.152). Investment grants from the rest of the world comprise those granted directly by the institutions of the European Union via the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD).’;

• (vv) in paragraph 3.091 the first sentence is replaced by the following:

‘The most important types of other grants made by the EAGF, EAFRD and investment grants for agriculture are:’;

• (ww) paragraph 3.092 is replaced by the following:

• ‘3.092. Investment grants in cash should be recorded when payment is due to be made. Investment grants in kind are recorded when the ownership of the asset is transferred (cf. ESA 2010, 4.162).’;

• (xx) paragraph 3.093 is replaced by the following:

• ‘3.093. Other capital transfers cover transfers other than investment grants and capital taxes which do not themselves redistribute income but redistribute saving or wealth among the different sectors or subsectors of the economy or the rest of the world. They can be made in cash or in kind (cases of debt assumption or debt cancellation) and correspond to voluntary transfers of wealth (ESA 2010, 4.164).’;

• (yy) in paragraph 3.095 the last sentence is replaced by the following:

‘They also include transfers from general government to cover losses accumulated over several financial years or exceptional losses from causes beyond the control of the enterprise (cf. ESA 2010, 4.165).’;

• (zz) paragraph 3.096 is replaced by the following:

• ‘3.096. In the case of agriculture, other capital transfers also include:

• — grants for the permanent abandonment of orchards or vineyards,

• — grants for the cessation or reduction of milk production (in so far as they affect, explicitly or implicitly, the value of quotas),

• — compensation for exceptional and catastrophic losses of fixed capital goods used in the production of agricultural goods (e.g. animals and equipment) (cf. 2.045 and 3.067),

• — start-up grants to young farmers for purposes other than financing the acquisition of assets,

• — grants to compensate for reduction of the value of assets or to reduce debts,

• — major payments in compensation for damage or injuries not covered by insurance policies (except payments by general government or by the rest of the world described in ESA 2010 under 4.165 (a)) awarded by courts of law or settled out of court, for example payments for compensation for damage caused by major explosions, oil spillages, etc. (ESA 2010, 4.165 (h)).’;

• (aaa) in the heading of part H ‘(cf. ESA 95, 6.02 to 6.05)’ is replaced by the following:

‘(cf ESA 2010, 3.139- 3.145)’;

• (bbb) in paragraph 3.106 the last sentence is replaced by the following:

‘This treatment also ensures compatibility between the EAA and the ESA 2010 (cf. ESA 2010, 3.140) and microeconomic accounts of the farm accountancy data network and obviates the need to distinguish between livestock having the character of fixed capital goods and livestock having the character of stock.’.

• (7) In Section IV, in paragraph 4.06 the first sentence is replaced by the following:

‘A description of what total hours worked include and exclude can be found in ESA 2010 (11.27 and 11.28).’.

• (8) Section V is amended as follows:

• (a) in paragraph 5.03 the table is replaced by the following:

• (b) paragraph 5.16 is replaced by the following:

• ‘5.16. For analysis of the long-term trend, the indices and rates of change of the income indicators for the European Union are calculated on the basis of the EU aggregates expressed in euro at fixed exchange rates: for values expressed in real terms (i.e. after deduction of the effect of the average rise in prices), the deflators used are also based on a fixed base year.’.

• (9) Section VI is amended as follows:

• (a) in the heading of part A ‘(cf. ESA 95, Chapter 10)’ is replaced by the following:

‘(cf. ESA 2010, Chapter 10)’;

• (b) in paragraph 6.01 the second sentence is replaced by the following:

‘The ESA 2010 (10.13 to 10.23) clearly states that the price component should only include changes relating to prices and that all other changes should be included in the volume component.’;

• (c) in paragraph 6.02 the last sentence is replaced by the following:

‘The other difference in quality, important for the EAA, is that of a shift in sales of a product between two differently priced markets, e.g. domestic and external, industrial use and sales to consumers (cf. ESA 2010, 10.13 to 10.18).’;

• (d) in paragraph 6.04 the last sentence is replaced by the following:

‘In this case, the ESA 2010 (10.32) states that it is preferable to deflate the value for the current year by a suitable price index to estimate changes in volume (ESA 2010, 10.01).’;

• (e) in paragraph 6.06 the last sentence is replaced by the following:

‘This means that each and every change in the value of a given flow must be attributed to either a price change or a change in volume or a combination of the two (cf. ESA 2010, 10.12).’;

• (f) paragraph 6.08 is deleted;

• (g) in paragraph 6.09 the first sentence is replaced by the following:

‘In accordance with ESA 2010 (10.20), in the EAA, changes in volume are measured using Laspeyres-type indices and changes in price are measured using Paasche-type indices.’;

• (h) paragraph 6.13 is replaced by the following:

• ‘6.13. The year used for submitting and presenting data at constant prices can be different from the base year; it is called the reference year. In a series of indices, the reference year is the one that takes the value 100.’;

• (i) paragraph 6.14 is replaced by the following:

• ‘6.14. Series of volume indices in the prices of a reference year are obtained by chaining indices calculated in the prices of the preceding year (cf. ESA 2010, 10.20).’;

• (j) paragraph 6.16 is replaced by the following:

• ‘6.16. Example:

Let us consider two homogeneous elementary products, A and B. The following series are based on the price structure for the preceding year:

	n P n	n – n + 1 volume index	n + 1 P n	n – n + 1 price index	n + 1P n + 1	n + 1 – n + 2 volume index	n + 2P n + 1	n + 2 – n + 1 price index	n + 2P n + 2
A	100	105,0	105	110,0	115	102,0	117	108,0	126
B	300	110,0	330	95,0	314	90,0	283	105,0	297
Total	400	108,8	435	98,6	429	93,2	400	105,8	423

The volume and price indices for the whole (A + B) depend on the weighting given to each product, A and B.

If these series are expressed in relation to a fixed reference year (e.g. n), the only way to retain the same n/n-1 volume indices is to chain the indices separately. This gives the following series (base equal to 100 in n):

	n	n + 1	n + 2
A	100	105,0	107,1
B	100	110,0	99,0
Total	100	108,8	101,4

(101,4 = 108,8 * 93,2/100)

The values at constant prices expressed in relation to the reference year n are:

	n	n + 1	n + 2
A	100	105	107,1
B	300	330	297,0
Total	400	435	405,6

(405,6 = 400 * 101,4/100)

As a result, the account is no longer additive. Adding the values at constant prices for A and B gives the following series:

	n	n + 1	n + 2
A + B	400	435	404,1

Other than in the year following the reference year, the re-referenced series are not additive.’;

• (k) in paragraph 6.17, the first sentence is replaced by the following:

‘According to ESA 2010 (10.23), the non-additive constant price data are published without any adjustment[^ntr*9-L_2019047EN.01000801-E0009].

[^ntr*9-L_2019047EN.01000801-E0009]: This does not preclude the possibility that there may be circumstances in which compilers may judge it preferable to eliminate the discrepancies in order to improve the overall consistency of the data.’;"

• (l) in point 4 of Section B, the heading is replaced by the following:

‘4.   Calculation of value added at fixed year prices’;

• (m) in paragraph 6.18 the last sentence is replaced by the following:

‘The theoretically correct method for calculating value added at fixed year prices is to carry out “double deflation” (cf. ESA 2010, 10.31-10.32).’;

• (n) paragraph 6.20 is replaced by the following:

• ‘6.20. Example:

A series of current values and values in the prices of the preceding year (volumes) concerning output and intermediate consumption is set out below:

	n P n	n + 1 P n	n + 1 P n + 1	n + 2 P n + 1	n + 2 P n + 2
Output	150	160	170	180	200
Intermediate consumption	40	30	35	40	45

The value added in volume terms is obtained by deducting the volume of intermediate consumption from the volume of output. The following series is derived:

	n P n	n + 1 P n	n + 1 P n + 1	n + 2 P n + 1	n + 2 P n + 2
Gross value added	110	130	135	140	155

In this way, the following volume indices in the prices of the preceding year are obtained:

	n + 1	n + 2
Gross value added	118,2	103,7

(118,2 = 130/110 * 100) (103,7 = 140/135 * 100)

The gross value added of a particular year in prices of year n (fixed year prices) is derived by multiplying the current value for n by the volume chain index.

VA n + 1 (in n prices) = 110 * 1,182 = 130

VA n + 2 (in n prices) = 110 * 1,182 * 1,037 = 135’.

[^ntc*1-L_2019047EN.01000801-E0001]  European System of National and Regional Accounts — ESA 2010, Luxembourg 2013.’.

[^ntc*2-L_2019047EN.01000801-E0002]  It should be pointed out that, although the ESA gives preeminence to local KAUs, the unit best suited to analyses of the production process is the unit of homogeneous production (UHP). This unit is used to analyse inputs and outputs, since it corresponds exactly to a type of activity. Institutional units are thus divided into as many UHPs as there are activities (other than ancillary). By grouping these UHPs it is possible to break down the economy into “pure” (homogeneous) branches. A UHP cannot, as a rule, be directly observed. Therefore, the accounts of homogeneous branches cannot be compiled on the basis of groups of UHPs. The ESA describes a method for compiling these accounts. It involves attributing secondary production and the corresponding costs of activity branches to the appropriate homogeneous branches (ESA 2010, 2.153-2.156, 9.52 to 9.63).’;

[^ntc*3-L_2019047EN.01000801-E0003]  These are small units producing for own consumption, not for selling, carrying out agricultural activities without depending economically on these activities.’;

[^ntc*4-L_2019047EN.01000801-E0004]  The 2008 SNA (10.94), unlike the ESA 2010 (3.140), considers that consumption of fixed capital should be calculated for livestock.’;

[^ntc*5-L_2019047EN.01000801-E0005]  They correspond in particular to wages and salaries which employers continue to pay on a provisional basis to their employees in the event of illness, maternity, accidents at the workplace, invalidity or redundancy, in so far as the amounts concerned can be separately identified.’;

[^ntc*6-L_2019047EN.01000801-E0006]  However, when a grant serves the dual purpose of financing both the amortisation of the debt and the payment of interest on it, and when it is not possible to apportion it between the two elements, the whole of the grant is treated as an investment grant.’;

[^ntc*7-L_2019047EN.01000801-E0007]  Interest receivable corresponds to “Other accounts receivable” (F.8) in the financial account.’;

[^ntc*9-L_2019047EN.01000801-E0009]  This does not preclude the possibility that there may be circumstances in which compilers may judge it preferable to eliminate the discrepancies in order to improve the overall consistency of the data.’;’

[^ntr*8-L_2019047EN.01000801-E0008]: Only interest received by agricultural units organised as companies.’;

ANNEX II

Annex II to Regulation (EC) No 138/2004 is amended as follows:

• (1) Item 32.2 is replaced by the following:

• (2) Item 33.3 is replaced by the following: