Scope and Methodology used in producing the series, "Industrial Stocks" from the Quarterly Accounts Inquiry to Industry are as below.
Introduction
The Quarterly Accounts Inquiry to Industry is used to produce the results for two releases: 1) Industrial Stocks and 2) Capital Assets in Industry. The survey is sent to industrial enterprises in the Mining, Manufacturing, Energy and Waste Management sectors. This inquiry was initiated to meet national and EU requirements for quarterly economic variables, and is conducted under the Statistics (Business Accounts) Orders 2006, made under the Statistics Act, 1993.
The Quarterly Accounts Inquiry to Industry survey covers all companies with 20+ employees. The survey results are grossed using the latest available Census of Industrial Production (CIP) data which covers all enterprises which are wholly or primarily engaged in industrial production with 3+ persons engaged. The Quarterly Accounts Inquiry results represent changes in the levels of stocks, acquisitions of capital assets and sales of capital assets and are shown at current values (seasonally unadjusted). These series are short-term indicators of trends, and are subject to revision when the annual Census of Industrial Production results become available. Note, however, that the CIP variable "additions to capital assets" includes capitalised Research & Development (R&D), whereas the capital acquisitions series in the Capital Assets in Industry release do not.
Scope
The Survey of approximately 2,000 enterprises covers all enterprises with 20+ persons engaged in the Mining, Manufacturing, Energy and Waste Management sectors
NEW: From Q1 2009, the business activity classifications used in the releases are based on the Statistical Classification of Economic Activities in the European Community, i.e. NACE Rev. 2. Previous to Q1 2009, the industrial activity classification used was NACE Rev. 1.1. The main changes for the Industrial Stocks and Capital Assets in Industry releases include the addition of a new sector Water Supply, Sewerage and Waste and significantly, the reclassification of publishing enterprises to the Services sector (i.e. outside the scope of this release). Further detail is being provided in relation to Food Products and Beverages sectors as well as Chemicals and Basic Pharmaceutical Products. There has also been a reclassification of certain enterprises under NACE Rev. 2 to Computer, Electronic and Optical Products and Electrical Equipment.
Methodology - Industrial Stocks
Estimates are made for non-responding enterprises, and for those enterprises where the total stock level returned is zero. The opening stock level for each such enterprise in the current quarter is made equal to the closing stock level for that enterprise in the previous quarter. To estimate the closing stock level for the enterprise in the current quarter, the sample is classified into relatively homogeneous cells defined by NACE division and employment size, and the cell ratio closing stocks to opening stocks (calculated from the aggregated respondent values in the non-repsondent's cell) is applied to the opening stock level for the enterprise. The stock change is derived as the closing stock level minus the opening stock level.
To derive estimates inclusive of those enterprises having 3 to 19 persons engaged, the sample results are grossed, by NACE division, using grossing ratios form the latest available CIP.
Methodology - Capital Assets in Industry
Estimates are made for non-response. For each non-responding enterprise, capital acquisitions data are imputed from returns for that enterprise in previous quarters or to the CIP. Where no historical data are available, estimates are made as follows: the sample is classified into relatively homogeneous cells defined by NACE division and employment size, and the cell ratio acquisitions per person (calculated from the aggregated respondent values in the non-respondent's cell) is applied to the employment for the non-respondent. The estimation procedure for capital sales is similar.
To derive estimates inclusive of those enterprises having 3 to 19 persons engaged, the sample results are grossed, by NACE division, using grossing ratios from the latest available CIP.
Definitions - Industrial Stocks
Stocks are valued (exluding VAT) on the accounting basis used by the enterprises. The stocks covered relate to goods actually held by the enterprise on its premises. Stock changes are calculated by subtracting the value of stocks at the beginning of the quarter from the value at the end of the quarter
Definitions - Capital Assets in Industry
Capital assets refer to physical assets, or computer software, with a useful life of more than one year intended to be used by the enterprise itself. The figures in this release are therefore exclusive of capitalised Research & Development.
Definitions - General
An enterprise is defined as the smallest combination of legal units that is an organisational unit producing goods or services, which benefits from a certain degree of autonomy in decision making, especially for the allocation of its current resources (e.g. company, partnership, individual proprietorship, etc.). An enterprise may be a sole legal unit.
Other
The figures provided in this release are short-term indicators only. They are based on quarterly information supplied by enterprises, many of whom do not maintain sub-annual accounting systems. The annual Census of Industrial Production, which utilises financial accounts data, should be considered as the definitive reference for annual stocks information.