Terms	Definition
Compensation of employees	Compensation of employees = Wages and salaries to operatives and other employees (including share-based payments granted to employees) + Payments in kind and employer's social security expenditure (including contributions to Mandatory Provident Fund schemes, messing, medical expenses and premiums for employees’ compensation insurance) + Payments to outworkers
Establishment	An establishment is ideally an economic unit which engages, under a single ownership or control, in one or predominantly one kind of economic activity at a single physical location. Where separate figures relating to different activities or different locations under the same management are not available, a combined return is accepted and in this case, the reporting unit is treated as an establishment.
Gross additions to fixed assets	Gross additions to fixed assets = Acquisitions of fixed assets – Proceeds from disposal of fixed assets, where fixed assets include (a) land and buildings; (b) plant and machinery; and (c) other fixed assets.
Index of industrial production	Movement in Index of Industrial Production reflects the changes in local industrial output in real terms, i.e. changes in the volume of local production after discounting the effect of price changes.
Number of persons engaged	Number of persons engaged = Number of working proprietors, active partners and unpaid family workers + Number of employees
Operating expenses	Operating expenses = purchases of materials, supplies and industrial work/services + purchases of goods for resale + rent, rates and government rent for land and buildings + rentals for machinery, equipment and vehicles + interest payments + miscellaneous operating expenses (excluding bad debts, donations to charities, fines, direct taxes, write-off, depreciation, amortisation, provision, obsolete stocks and loss on disposal of fixed assets) - changes in stocks of materials/supplies, work-in-progress, finished products and goods for resale
Sales of goods, industrial work and industrial services	Sales of goods, industrial work and industrial services = Value of all sales of goods produced + Machinery produced for own use + Value of resales of goods in same condition as purchased + Receipts for industrial work and industrial services rendered to other establishments.
Other receipts	Other receipts = Rental income + Income from other sources
Producer price for industrial sector	Movement in Producer Price Index for industrial sector reflects changes in prices of local industrial output. Producer prices are selling prices (net of any discounts or rebates allowed to buyers, plus any surcharges) received by producers. Transportation and other incidental charges are not included.
Purchases of materials, supplies and industrial work/services	Purchases of materials, supplies and industrial work/services = Purchases of fuels + Purchases of electricity + Purchases of water + Value of all other purchases of materials/supplies for production and business operation + Payments for sub-contract work + Payments for repair and maintenance services
Gross surplus	Gross surplus = sales of goods, industrial work and industrial services + other receipts - operating expenses - compensation of employees
Value added	Value added = sales of goods, industrial work and industrial services + other receipts - operating expenses (net of interest payments and stock appreciation)