Accounting Methods of Industrial Production Increase Rate

Introduction to Industrial Accounting MethodsProblems involved in the Existing Methods

Discussions on Reform Orientation

Introduction to Industrial Accounting

1. Two accounting methods of industrial increase

A. Decrease of the Price IndexReducing industrial increase by the price index of industrial products

B. Index of Physical QuantityCounting the industrial production index by the physical quantity of major products

2. Methods of Decreasing the Price Index -(currently applied）

A. Calculation of annual industrial added value

(a) Using the total industrial output, the intermediate input and the due VAT submitted by above-scale industrial enterprises to calculate the yearly industrial increase by production method.

(b) Using the cost survey forms submitted by industrial enterprises to calculate the industrial added value by production method and income method.

(c) Now we are in the transition period of the two methods.

B. Calculation of Monthly Industrial added value

(a) Using annual statistics to calculate the added value rate of sub-industries, and with the calculated total monthly output of sub-industries to calculate the increase rate of monthly industrial added value.

(b) Replacing industrial added value rate every year, and making trial adjustments.

Problems in Current Methods

• 1. the industrial added value by production method is not completely integrated with the one by income method.

• 2. The added value by Industrial Department is not completely integrated with the one by Accounting Department.

• 3. The effects of industrial added value, as the index of industrial production fluctuation, still need to be discussed.

Discussions on Reform Orientation

• 1. Further optimizing the cost survey

• 2. Transforming the price index method of value to the production index method of physical quantity

• 3. Transforming the calculation method of added value by professions to integrated accounting

• This document only represents personal opinions, and it is for discussion. It does not represent any departments of the National Bureau of Statistics. It will not be responsible for the quotation of the opinions involved.

• Presenter： Yu Jianxun• E-mail： yujianxun@stats.gov.cn