Gross value of production

The gross value of production measures the actual production output of an establishment. Operating activities include all production output, also production for own use and production for the enterprise's other establishments. Gross value excludes transfer gains from fixed assets, which are not seen as a production item but as windfall profit. Additionally, the purchases of goods for resale are deducted from the profits of operating activities, so that operating activities only include the margin created by sales of goods for resale.

The gross value of production is calculated on the basis of the computational operation margin reported by the establishment. The formula for gross value of production is the following:

Turnover

+ deliveries to the enterprise's other establishments

+ change in the inventory of finished products

+ production for own use

+ other operating profits

- transfer gains from fixed assets

- purchases of goods for resale

= GROSS VALUE

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