Activity
საქმიანობა
Economic Activity
Merging of various types of resources (human resources, technology, information networks, etc.), which results in various types of goods and/or services; entails the use of resources, existence of production process and, subsequently, output of product.
Types of economic activities are specified in national classification of Georgia “Types of Economic Activities” (GNC 006-2016), based on European classification of types of economic activities NACE (No-menclature des Activities de Communaute Europeenne).
Types of economic activities are specified in national classification of Georgia “Types of Economic Activities” (GNC 006-2016), based on European classification of types of economic activities NACE (No-menclature des Activities de Communaute Europeenne).
Types of Activity
In practice, the majority of entities are engaged in more than one (mixed) type of activity at the same time. Accordingly, following types of activities are defined:
Principal
Economic activity that contributes for the largest share of the value added created by a particular economic entity (not necessary that share exceeds 50%)
Secondary
Economic activity (one or many) that might be pursued by a particular economic subject parallel to the principal activity, but it does not have the largest share in the created value added
Ancillary
Activity that creates conditions for carrying out the principal (and secondary) economic activity by a particular economic subject, for instance: bookkeeping, transportation, storage, procurement, promotion, repair and technical maintenance
Business Activity
Defined by the Law of Georgia “On entrepreneurs” as a lawful and repeated activity, which is oriented to get profit, which is carried out independently and is well organized.
Enterprises
საწარმოები
Enterprise
Economic entity that produces goods or provides services, manages own resources independently; carries out one or several kinds of activities on one or several locations; might be a natural (individual) or legal person.
Enterprises by Size
Determined by the number of persons employed (annual average) and the turnover (annual total):
🏭 Large
Number of employed ≥250 persons
or Turnover ≥60 mln GEL
or Turnover ≥60 mln GEL
🏢 Medium
Number of employed 50–250 persons
or Turnover 12–60 mln GEL
or Turnover 12–60 mln GEL
🏪 Small
Number of employed ≤50 persons
and Turnover ≤12 mln GEL
and Turnover ≤12 mln GEL
Turnover & Goods
ბრუნვა და პროდუქცია
Turnover
Monetary value of sales by an economic entity in the reporting period, which includes the accrued incomes from the sales of goods and services (barter included); includes all taxes or duties on goods and services (except VAT and excise tax) and all the expenses (transportation, packing, etc.) imposed upon a buyer.
★
Incomes from selling assets and subsidies are excluded from turnover.
Discounts, concession of prices, and the cost of returned packaging might be excluded from turnover.
Discounts, concession of prices, and the cost of returned packaging might be excluded from turnover.
Production Value
Actual amount of products created by an economic entity, including the volume of sold output and goods or services bought for resale, as well as the changes in stocks of finished goods; calculated in basic prices.
+ Turnover
+ Capitalized goods and services
− Costs of purchases of goods and services for resale
+ Subsidies on products
+/− Change of stocks of incompleted production
+/− Change of stocks of finished products
+/− Change of stocks of goods and services for resale
+ Capitalized goods and services
− Costs of purchases of goods and services for resale
+ Subsidies on products
+/− Change of stocks of incompleted production
+/− Change of stocks of finished products
+/− Change of stocks of goods and services for resale
= Production value in basic prices
★
In trade, intermediate activities, supply of electricity and natural air, transport and communication (only in separate cases) production value is calculated as a difference between the value sold goods (services) and value of their acquisition.
Capitalized Output
Output designated not for sale, but for own final use; the cost of those goods that are made by own efforts and remain at producer possession for own final consumption or investment (basic materials or non-material assets) purposes; might also be accounted in investments.
★
Output for own final use is estimated according to the basic prices of similar output. In case such estimation is impossible, the estimations are done according to the expenses of production.
Purchases
ყიდვები
Purchases of Goods and Services
Total sum of all goods and services purchased during the reporting period, irrespective of whether they are intended for resale.
Purchases of goods and Services for Resale
Goods and services purchased in the reporting period and intended for resale without changing their form and properties; the value is calculated as a costs of purchases, excluding VAT and excise tax.
Employment
დასაქმება
Number of Persons Employed
Average number of persons employed (employees, employed shareholders and employed family members in case of family owned enterprise) in an enterprise during the reporting period.
Example: Given in a month with 31 days, 30 poeple worked during the dates 1–12 and 50 poeple worked during the dates 13–31,
Average: (12×30 + 19×50) / 31 = 42.3 person
People employed for incomplete work-day will be calculated proportionally to the actually worked hours.
Example: Given 8-hours work-day and 23 work-days in a month, if a person worked for total of 92 man-hours,
Average = (92/8) / 23 = 0.5 person
Average: (12×30 + 19×50) / 31 = 42.3 person
People employed for incomplete work-day will be calculated proportionally to the actually worked hours.
Example: Given 8-hours work-day and 23 work-days in a month, if a person worked for total of 92 man-hours,
Average = (92/8) / 23 = 0.5 person
Number of Employees
Persons who are employed at an enterprise, receive and/or are paid salary, and whose labor relations are regulated by an agreement (contact) signed with an enterprise.
Personnel Costs
შრომითი დანახარჯები
Personnel Costs
Sum of all kinds of expenses on employed persons in the reporting period, including:
▪ Remuneration for work (salary, additional pay, bonus, vacation coverage, compensation benefits, etc.) accrued (including income tax) on employees or paid in kind;
▪ Social assistance covered from the enterprise funds;
▪ Other expenses for education, healthcare, cultural and other purposes covered from enterprise funds.
▪ Remuneration for work (salary, additional pay, bonus, vacation coverage, compensation benefits, etc.) accrued (including income tax) on employees or paid in kind;
▪ Social assistance covered from the enterprise funds;
▪ Other expenses for education, healthcare, cultural and other purposes covered from enterprise funds.
Value Added
დამატებული ღირებულება
Value Added
Value of production output, plus subsidies on products, less purchases of goods and services (except products bought for as-is-resale), plus/minus changes in stocks of raw materials, materials and supplies necessary for working processes; estimated according to the costs of various production factors of the economic entity; calculated in basic prices.
+ Turnover
− Purchases of goods and services
+/− Change in stocks of goods and services
+ Capitalized output
+ Subsidies on products
− Purchases of goods and services
+/− Change in stocks of goods and services
+ Capitalized output
+ Subsidies on products
= Value added in basic prices
Intermediate Consumption
შუალედური მოხმარება
Intermediate Consumption
Cost of the volume of goods and services consumed (used or transformed) for the production processes, excluding the consumption of fixed capital (fixed capital).
+ Purchases of goods and services
− Purchases of goods and services for as-is-resale
+/− Changes in stocks of raw materials, materials and supplies necessary for working processes
− Purchases of goods and services for as-is-resale
+/− Changes in stocks of raw materials, materials and supplies necessary for working processes
= Intermediate consumption
Fixed Assets
ფიქსირებული აქტივები
Fixed Assets (Fixed Capital)
Productive assets used in in production process repeatedly or for a long-term (over one year).