Classification of components of Income-based Gross Domestic Product

3 - Gross mixed income

'Gross mixed income' refers to income of unincorporated enterprises. It may not be possible to estimate compensation of employees, consumption of fixed capital and a return to capital separately, in which case an estimate of mixed income, covering all these items, should be made. In practice, all unincorporated enterprises owned by households that are not quasi-corporations are deemed to have mixed income as their balancing item, except owner-occupiers in their capacity as producers of housing services for own final consumption, households leasing dwellings and households employing paid domestic staff. For owner-occupiers and those leasing dwellings, all value-added is operating surplus. For domestic staff all value-added is compensation of employees (unless any taxes or subsidies on production are payable or receivable on the output).

31 - Net mixed income

'Net mixed income' refers to gross mixed income less consumption of fixed capital: unincorporated businesses.

32 - Consumption of fixed capital: unincorporated businesses

'Consumption of fixed capital' refers to the decline, during the course of the accounting period, in the current value of the stock of fixed assets owned and used by a producer as a result of physical deterioration, normal obsolescence or normal accidental damage. The terms depreciation, capital consumption allowance, and capital cost allowance are often used in place of consumption of fixed capital but are avoided in the System of National Accounts since the term depreciation is often used in commercial accounting in the context of writing off historic costs, whereas in the System of National Accounts consumption of fixed capital is dependent on the current value of the asset. Consumption of fixed capital is calculated for all fixed assets owned by producers, but not for valuables (precious metals, precious stones, etc.) that are acquired precisely because their value, in real terms, is not expected to decline over time. Fixed assets must have been produced as outputs from processes of production as defined in the System of National Accounts. Consumption of fixed capital does not, therefore, cover the depletion or degradation of natural assets such as land, mineral or other deposits, coal, oil, or natural gas, or contracts, leases and licences. Consumption of fixed capital: unincorporated businesses represents the consumption of fixed capital of unincorporated businesses.