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Chapter 12 The production account

Australian System of National Accounts: Concepts, Sources and Methods
Reference period
2020-21 financial year

12.1    Production accounts record the expenses incurred in production and the receipts from sales of goods and services. Sales of goods and services (including goods and services produced for own use) are recorded on the credit (or receipts) side of the account (referred to as the "Resources" side of the accounts in the 2008 SNA). On the debit (or payments) side, expenses of production are recorded; namely, intermediate consumption, compensation of employees, taxes less subsidies on production and imports, gross operating surplus and gross mixed income (referred to as the "Uses" side of the accounts in the 2008 SNA). The gross domestic product account is, in effect, a consolidation of the trading accounts of individual enterprises.

12.2    The receipts side of the gross domestic product account in the ASNA shows sales of goods and services to final consumers (including exports less imports) and changes in inventories. Because only sales to final consumers are shown, revenue from the sale of intermediate goods and services (i.e. goods and services used up in the production of final output) does not appear. In the process of consolidation of the production accounts of all sectors, intermediate goods and services cancel out as the revenue of one producer is a cost to another. On the payments side the incomes from production are shown; namely, compensation of employees, gross operating surplus, gross mixed income and net taxes on production and imports. Where the gross domestic product account has been derived from balanced S-U tables, the sums of the two sides of the account are balanced; otherwise, statistical discrepancies are inserted to achieve balance.

12.3    In the ASNA, the GDP accounts are shown as:

 GDP ACCOUNTS 
PRODUCTIONEXPENDITURESINCOME
Gross value addedFinal consumption expenditureCompensation of employees
Taxes less subsidies on productsGross fixed capital formationGross operating surplus
 Domestic final demandGross mixed income
 Changes in inventoriesTotal factor income
 Gross national expenditureTaxes less subsidies on
production and imports
 Exports of goods and services
less Imports of goods and services
 
Statistical discrepancy (P)Statistical discrepancy (E)Statistical discrepancy (I)
Gross domestic productGross domestic productGross domestic product