Expense of establishment

Definition

Expense refers to the decrease in economic benefits or service potential, during the reporting period, in the form of outflows or consumption of assets or incurrence of liabilities that result in decreases in equity, other than those relating to distributions to owners.

Establishment refers to the level in the statistical hierarchy below the company in the Business Register statistical hierarchy, and at which the accounting data required to measure production are available (principal inputs, revenues, salaries and wages). The establishment is defined as the most homogeneous unit of production for which the business maintains accounting records. From these records, it is possible to assemble all the data elements required to compile the gross value of production (total sales or shipments, and inventories), the cost of materials and services, and labour and capital used in production.

Relation to previous version

  • Expense of establishment February 21, 2018 to current

    This is the current version.

  • Expense of establishment May 11, 2016 to February 20, 2018
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