2013 Annual Survey of Philippine Business and Industry (ASPBI) - Financial and Insurance Activities : Final Results

Reference Number: 

2016-142

Release Date: 

Monday, December 5, 2016

Other financial service activities, except insurance and pension funding industry leads the sector

Final results of the 2013 Annual Survey of Philippine Business and Industry showed that a total of 7,337 establishments were engaged in Financial and Insurance Activities.

Other financial service activities, except insurance and pension funding comprised 5,366 (73.1 percent) of the total number of establishments. This was followed by establishments engaged in monetary intermediation with 698 (9.5%).  Ranked third were establishments engaged in activities auxiliary to insurance and pension funding and fund management activities with 395 (5.4%). (See Figure 1)

Establishments with total employment (TE) of 20 and over comprised only 14.4 percent while establishments with TE of less than 20 comprised 85.6 percent of the total number of establishments.

 

Monetary intermediation industry employs the highest number of workers

The sector employed a total of 281,562 workers in 2013. Of the total, almost all (98.1%) were paid employees and the rest were working owners or unpaid workers.

Monetary intermediation activities employed almost half of the number of workers 138,198 (49.1%).  Other financial service activities, except insurance and pension funding activities, followed with 98,231 employees (34.9%).  Ranked third was insurance activities with 16,707 employees or 5.9 percent. (See Figure 2)

Workers in establishments with total employment (TE) of 20 or more totaled to 228,473. This comprised about 81.1 percent of the total employment for all employment sizes. On the other hand, establishments with TE of less than 20 employed only about 53,089 workers or 18.9 percent.

 

Monetary intermediation employed the most number of workers of 133,434 or 58.4 percent of the total for TE of 20 or more.  Placed second was other financial service activities, except insurance and pension funding activities with 56,757 workers. This was followed by insurance with 16,420 workers or 7.2 percent.  Pension funding employed the least workers with only 248 workers. (See tables 1, 2 and 3)

 

Workers in activities of holding companies are the highest-paid employees

The sector paid in 2013 a total compensation of PHP130.9 billion, equivalent to an average annual compensation of PHP473.6 thousand per paid employee.  Workers in establishments with TE of 20 and over were paid PHP119.6 billion, accounting for 91.4 percent of the total for all establishments.  While workers in establishments with TE of less than 20 were paid PHP11.3 billion.

Industry wise, monetary intermediation paid the highest compensation of PHP84.3 billion comprising more than half (64.4%) of the total.  Other financial service activities, except insurance and pension funding activities placed far second with PHP21.5 billion or 16.4 percent.  Insurance ranked third with PHP11.0 billion or 8.4 percent.  On the other hand, pension funding recorded the lowest amount of PHP117.0 million (0.09%).

Workers in activities of holding companies were the highest-paid employees receiving an average annual compensation of PHP961.8 thousand per annum surpassing the sector’s average of PHP473.6 thousand per annum.  Employees of insurance activities and monetary intermediation followed next with PHP662.5 thousand and PHP611.1 thousand, respectively.  However, those employed in other financial service activities, except insurance and pension funding activities were paid only PHP229.9 thousand.

 

Monetary intermediation activities contribute the biggest share in income and expense

Gross income realized by the sector reached PHP1,218.2 trillion in 2013. Monetary intermediation activities had the biggest share with PHP559.9 billion or 46.0 percent of the total. Insurance ranked far second with PHP196.8 billion (16.2%). Activities of holding companies ranked third with PHP196.2 billion (16.1%).

Total expense incurred amounted to PHP810.7 billion in 2013. Being the major contributors in income, monetary intermediation activities and insurance activities also had the largest proportion in expense with PHP395.2 billion (48.7%) and PHP171.4 billion (21.1%), respectively. However, pension funding activities incurred the lowest income of PHP1.3 billion (0.1%) and expense of PHP1.1 billion. Figure 4 shows the top five industry groups in income and expense.

Gross income of establishments of TE 20 and over reached PHP1.08 trillion or about 88.3 percent of the total for the sector. Establishments with TE of less than 20 contributed PHP142.1 billion or 11.7 percent of the total for the sector.  Expenses incurred by establishments of TE 20 and over summed to PHP750.9 billion or 92.6 percent of the total for the sector.  Establishments with TE of less than 20 incurred PHP59.7 billion or 7.4 percent of the total for the sector.

 

Value added amounts to approximately PHP511.1 billion

Value added realized by financial and insurance sector totaled PHP511.0 billion in 2013.

Establishments with TE of 20 and over recorded a value added of PHP435.9 billion or 85.3 percent of the total for the sector. Establishments of TE of less than 20 reached value added of PHP75.1 billion or 14.7 percent of the total.

Industry wise, monetary intermediation activities registered the highest value added with PHP259.1 billion (50.7%). Activities of holding companies, ranked second with PHP115.5 billion (22.6%) and other financial service activities, except insurance and pension funding ranked third with PHP69.0 billion (13.5%). On the other hand, pension funding, recorded the least with PHP235.9 million (0.05%). (See Figure 5)

Monetary intermediation has the highest e-commerce sales

Only six industries reported e-commerce sales for the year 2013. E-commerce sales reached PHP9.2 billion in 2013. The highest was reported by establishments engaged in monetary intermediation amounting to PHP7.8 billion or 84.5 percent of the total. This was followed by other financial service activities, except insurance and pension funding with PHP701.4 million (7.6%) and by activities auxiliary to financial service, except insurance and pension funding with PHP473.6 million or 5.2 percent. Insurance reported the least with only PHP9.0 million.

 

Activities of holding companies has the highest labor productivity

Value added per employee, a measure of labor productivity, was estimated at PHP1.8 million. Activities of holding companies led the sector with PHP25.0 million while other financial service activities except insurance and pension funding activities registered the lowest with PHP702.0 thousand.

Establishments with TE of 20 surpassed that for all sizes which reported value added per employee of PHP1.9 million. Activities of holding companies also led the sector with PHP15.8 million while activities auxiliary to insurance and pension funding and fund management, the lowest with PHP841.8 thousand.

Establishments with TE of less than 20 had value added per employee of PHP1.4 million. Activities of holding companies again led with PHP73.9 million while pension funding registered the least with PHP141.5 thousand.

 

Gross addition to fixed assets reaches PHP72.8 million

Gross addition to fixed assets (capital expenditures less sale of fixed assets) acquired by the sector reached PHP72.8 million in 2013.

Monetary intermediation activities acquired the biggest gross addition to fixed assets with PHP69.1 million (94.8.%). This was followed by other financial service activities, except insurance and pension funding and insurance with PHP3.7 million and PHP30,000, respectively. Only these activities had gross additions to fixed assets.

Establishments with TE of 20 and over recorded gross additions to fixed assets at PHP72.8 million which is the same amount recorded for the sector. Establishments with TE of less than 20 did not have any gross additions to fixed assets.

 

Total change in inventories registers PHP18.6 billion in 2013

Total change in inventories (ending less beginning inventory) amounted to PHP18.6 billion in 2013. Insurance had the highest change in inventory with PHP8.5 billion (46.0%). Monetary intermediation followed with PHP5.9 billion (31.9%). Activities of holding companies, was third with PHP2.9 billion (15.9%). On the other hand, trusts, funds and other financial vehicles reported a negative value of change in inventories.

Establishments with TE of 20 or more recorded a change in inventories of PHP18.1 billion or 97.3 percent of the total change in inventories for the sector. Establishment with TE of less than 20 on the hand recorded only PHP503.5 million or 2.7 percent of the total for the sector.

 

Total subsidies received from the government amounts to PHP6.4 billion

Total subsidies received from the government amounted to PHP6.4 billion in 2013. Only five industry groups received subsidies from the government. These were activities auxiliary to insurance and pension funding and fund management activities, insurance , other financial services activities, except insurance and pension funding, monetary intermediation and activities of holding companies received PHP3.4 billion, PHP1.3 billion, PHP1.0 billion, PHP616.3 million and PHP8.4 million, respectively in 2013.

Establishments with TE of 20 and over received subsidies from the government of PHP6.4 billion or 99.9 percent of the total for the sector. Meanwhile, establishments with TE of less than 20 received only PHP8.4 million or 0.1 percent of the total for the sector.

 

 


TECHNICAL NOTES

Introduction

This Special Release presents the final results of the 2013 Annual Survey of Philippine Business and Industry (ASPBI) for the Financial and Insurance Activities sector for all establishments in the formal sector of the economy.

The 2013 ASPBI is one of the designated statistical activities of the former National Statistics Office (NSO) now Philippine Statistics Authority (PSA).  Data collected from the survey will provide information on the levels, structure, performance and trends of economic activities of the formal sector of the economy for the reference period 2013.  It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.

To provide establishment respondents ease of accomplishing the 2013 ASPBI questionnaires, the income and expense account in the Financial Statemenof establishment was adopted in the design of sectoral 2013 ASPBI questionnaires.  Income and revenue have the same concept in recording financial transaction of establishments while expense is cost incurred on a consumed basis.

Data collection was intensified through the use of web-based or online accomplishment of questionnaire through the PSA website and downloading of e-questionnaire and submission thru e-mail.

Legal Authority

The conduct of the ASPBI is governed by authority of the following legislative acts:

  • Republic Act 10625 know as the Philippine Statistical Act of 2013 dated September 12, 2013 - (Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities).  It shall be the policy of the State to effect the necessary and proper changes in the organizational and functional structures of the PSS in order to rationalize and promote efficiency and effectiveness in the delivery of statistical services.    
  • Section 27 of Republic Act No. 10625 states that:  

     "... Respondents of primary data collection activities such as censuses and sample surveys are obliged to give truthful and complete answers to statistical inquiries. The gathering, consolidation and analysis of such data shall likewise be done in the most truthful and credible manner. Any violation of this Act shall result in the imposition of the penalty of one (1) yearimprisonment and a fine of One hundred thousand pesos (P100,000.00). In cases where the respondent fails to give truthfulcomplete answers to such statistical inquiries is a corporation, the above penalty shall be imposed against, such corporation, enterprise or business concerned, shall be imposed a fine ranging from One hundred thousand pesos (P100,000.00) to Five hundred thousand pesos (P500,000.00)..."

  •  Section 27 of Republic Act No. 10625 (Philippine Statistical Act of 2013)

     Section 27 of RA 10625 states that:

      "... Any person, including parties within the PSA Board and the PSA, who breach the confidentiality of information, whether by carelessness, improper behavior, behavior with malicious intent, and use of confidential information for profit, are considered guilty of an offense and shall be liable to fines as prescribed by the PSA Board which shall not be less than Five thousend pesos (P5,000.00) nor more than Ten thousand pesos (P10,000,00.00) and/or imprisonment of three (3) months but not exceed one (1) year, subject to the degree of breech of information..."

  • Section 27 of Republic Act No. 10625 (Philippine Statistical Act of 2013)

     Section 7 of RA 6713 states that:

      "... (c) Disclosure and/or misuse of confidential informatiom.  Public officials and employees shall not use or divulge confidential or classified information officially known to them by reason of their office and not made available to the public, either:  (1) to further their private interest, or give undue advantage of anyone, or (2) to prejudice the public interest..."

Scope and Coverage

The 2013 ASPBI was a nationwide undertaking confined to the formal sector of the economy and as such excluded the informal sector. The following comprise the formal sector: 

  1.  Corporations and partnerships
  2.  Cooperatives and foundations
  3.  Single establishment with employment of 10 or more
  4.  Single proprietorship with branches

Hence, the 2013 ASPBI covered only the following economic units:

  • All establishments with total employment (TE) of 10 or more, and;
  • All establishments with TE of less than 10, except those establishments with Legal Organization = 1 (single proprietorship) and Economic Organization = 1 (single establishment), that are engaged in economic activities classified according to the 2009 Philippine Standard Industrial Classification (PSIC).

The initial estimate of the 2013 LE shows about 941,000 establishments in operation in the country for the year.  About 263,000 establishments (28% of total establishments) belong to the "Formal Sector" of which 229,000 (87%) comprise the establishment frame.

Listed below are the 18 economic sectors within the scope of the 2013 ASPBI classified under the 2009 PSIC.

  • Agriculture, Forestry and Fishing (A)
  • Mining and Quarrying (B)
  • Manufacturing (C)
  • Electricity, Gas, Steam, and Air Conditioning Supply (D)
  • Water Supply; Sewerage, Waste Management and Remediation Activities (E)
  • Construction (F)
  • Wholesale and Retail Trade; Repair and Maintenance of Motor Vehicles, Motorcycles (G)
  • Transportation and Storage (H)
  • Accommodation and Food Service Activities (I)
  • Information and Communication (J)
  • Financial and Insurance Activities (K)
  • Real Estate Activities (L)
  • Professional, Scientific and Technical Activities (M)
  • Administrative and Support Service Activities (N)
  • Education (P)
  • Human Health and Social Work Activities (Q)
  • Arts, Entertainment and Recreation (R)
  • Other Service Activities (S)

Sampling Design

Unit of Enumeration

The unit of enumeration for the 2013 ASPBI was the establishment. An establishment is defined as an economic unit, which engages, under a single ownership or control, in one or predominantly one kind of activity at a single fixed physical location.

Classification of Establishments

An establishment is categorized by its economic organization (EO), legal organization (LO), industrial classification, employment size and geographic location.

Economic Organization (EO).  This refers to the organizational structure or role of the establishment in the organization.  The following are the types of economic organization:

  • Single establishment (EO=1) is an establishment which has neither branch nor main office. It may have ancillary unit/s, other than main office, located elsewhere.
  • Branch only (EO=2) is an establishment which has a separate main office located elsewhere.
  • Establishment and Main Office (EO=3) is one where the establishment is located in the same address as the main office and with branch/es elsewhere.
  • Main Office (EO=4) is a unit which controls, supervises and directs one or more establishments of an enterprise.
  • Ancillary Unit other than Main Office (EO=5) is a unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provides services that support those establishments.

Legal Organization (LO).   This refers to the legal form of the economic entity that provides the legal basis for ownership of the establishment. The following are the types of legal organization:

  • Single Proprietorship (LO=1) refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise. A sole proprietorship must apply for a business name and be registered with the Department of Trade and Industry (DTI).
  • Partnership (LO=2) refers to an association of two or more individuals for the conduct of a business enterprise based upon an agreement or contract between or among them to contribute money, property or industry into a common fund with the intention of dividing profits among themselves.
  • Government Corporation (LO=3) also called Government-Owned or Controlled Corporation (GOCC) refers to a corporation organized for private aim, benefit or purpose with the government as the major stockholder, regardless of whether they are stock or non-stock corporations.
  • Main Office (EO=4) is a unit which controls, supervises and directs one or more establishments of an enterprise.
  • Stock Corporation (LO=4) refers to an ordinary business corporation organized by private persons, created and operated for the purpose of making a profit which may be distributed in the form of dividends to stockholders on the basis of their invested capital.
  • Non Stock, Non-profit Corporation (LO=5) refers to a business corporation which does not issue stock to its members and are created not to profit but for the public good and welfare. Of this character are most of the religious, social, charitable, educational, literary scientific, civic and political organizations and societies.
  • Cooperative (LO=6) refers to an organization composed primarily of small producers and/or consumers who voluntarily join together to form a business enterprise which they themselves own, control and patronize.
  • Others (LO=7) refer to an organization not classified in any of the above classification. It includes private associations, foundations, Non-Governmental Organizations, or other forms of legal organizations.

Industrial Classification.   The Industrial Classification of an economic unit is determined by the activity from which it derives its major income or revenue. The 2009 PSIC which was approved for adoption by government agencies and instrumentalities through NSCB Resolution No. 2 Series 2010 was utilized to classify economic units according to their economic activities.

Size (SZ) of the Unit of Enumeration.  The size of an economic unit is determined by its total employment (TE) as of specific date. Total employment (TE) refers to the total number of persons who work in or for the establishment/enterprise. This includes paid employees, working owners, unpaid workers and all employees who work full-time or part-time including seasonal workers. Included also are persons on short term leave such as those on sick, vacation or annual leaves and on strike.

The following are the size codes and corresponding total employment used in the 2013 ASPBI:

Geographic Classification.  Establishments are also classified by geographic area using the Philippine Standard Geographic Code (PSGC) classification. The PSGC contains the latest updates on the official number of regions, provinces, cities, municipalities, and barangays in the Philippines. The latest PSGC as of December 31, 2013 was used for the 2013 ASPBI.

Sampling Design

Selection of sample establishment for the 2013 ASPBI was done using stratified systematic sampling with 3-digit or 5-digit PSIC serving as industry strata and employment size as the second stratification variable.

Estimation Procedure

For Establishments with TE of Less Than 20

a. Non-Certainty Stratum

    The estimate of the total of a characteristic  for the non-certainty employment stratum TE less than 20 in the sth industry domain was

 

where:

  •    = denotes the non-certainty employment strata in TE of less than 20
  •  Xsj = value of the jth establishment in non-certainty employment stratum in TE of less than 20 in Sth industry domain
  •       =  1,2,3..., ns establishments
  •  Wsj = weight of the jth establishment in the non-certainty employment stratum of less than 20 in the sth industry domain

 

  •  Ns  = total number of establishments in the non-certainty employment stratum in TE of less than 20 in the sth industry domain
  •  ns  = number of sample establishments in the non-certainty employment stratum in TE of less than 20 in sth domain

b. Certainty Stratum

    The total of a characteristic  for the certainty employment stratum in the Cth industry domain was

where:

  •    = denotes the certainty employment strata in TE of less than 20 in the cth industry
  •  xcj = value of the jth establishment in the certainty employment strata in TE of less than 20 in the cth industry domain
  •  j      = 1,2,3,..., mc establishments 
  •  mc  = number of establishments in the certainty employment strata in TE of less than 20 in the cth industry domain

 

c. Total Estimate for TE of Less Than 20

    For all sections except B and C, national level estimates of the total of a characteristic  for the industry domain was obtain by                  aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,

 

     where  d  denotes the industry domain.

For Establishments with TE of 20 and Over

a.   Non-Certainty Stratum (strata of TE 20 to 49 and TE 50 to 99 for Sections G, H, I, J, K, L, M, N, P, Q, R and S.  

      The estimate of the total of a characteristic for the non-certainty employment strata in TE of 20 and over for selected industry                    domain in each region was as

where:

  •  s     = denotes the non-certainty employment strata in TE 20 and over
  •  p     = 1,2,...,17 regions geographic domains
  •  xspj  = value of the jth establishment in the certainty employment strata in TE of 20 and over for an industry domain in each region
  •  j         = 1,2,3..., nsp establishments
  •  Wspj = weight of the jth establishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

 

  •  Nsp  = total number of establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region
  •  nsp  = number of sample establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

b.   Certainty Stratum  

      The the total of a characteristic for the certainty employment stratum in TE of 20 and over in an industry domain in each region was

where:

  •     = denotes the non-certainty employment strata in TE of 20 and over
  •  p    = 1,2,...17, regions (geographic domains)
  •  xcpj = value of the jth establishment in the certainty employment strata in TE of 20 and over in an industry domain within each region
  •      = 1,2,3..., mcp establishment  
  •  mcp number of establishments in the certainty strata in TE of 20 and over in an industry domain in each region

 

c.   Total Estimate for TE of 20 and Over  

      The estimate of the total of a characteristic for the industry domain in each (geographic domain) was obtained by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,

where   dp  denotes the industry domains in each region.

National level estimates of the characteristics by industry domain were obtained by aggregating separately the estimates (Xdp)  for the particular industry domain from all the regions.

Weight Adjustment Factor for Non-Response

To account for non-response in the non-certainty strata, the adjustment factor (n/n’) was multiplied with the sampling weight (W) of each of the sampling unit. The sampling weight, defined as N/n, was recomputed as

 

Thus, the adjusted weight (W’sj) for employment stratum in TE 1-9 or TE 10-19 was

where:

  •  Ns   = total number of establisments in the employment stratum in TE 1-9 or TE 10-19 in the sth industry domain
  •  n's   = number of responding establishments in the employment stratum in TE 1-9 or TE 10-19 in the sth industry domain

For the non-certainty employment stratum for the selected industry domain with TE 20-99, the adjusted weight (W'spj) was

where:

  •  Nsp  = total number of establisments in the non-certainty employment stratum with TE 20-99 for the selected industry domain within each geographic domain (region)
  •  n'sp  = number of responding establishments in the non-certainty employment stratum with TE 20-99 for the selected industry domain within each geographic domain (region)

 

Questionaire Design

The questionnaire design is basically the same as that of the 2012 Census of Philippine Business and Industry. However, changes were made in the disaggregation of data items for fixed assets in support to the requirements of the 2008 Systems of National Accounts with respect to the generation of fixed capital formation.

The sample establishments responded also to the survey through the use of Web-based version of the 2013 ASPBI questionnaires which was accomplished online at the PSA website. Likewise, an e-questionnaire was also downloaded and submitted thru e-mail.

Response Rate

Field operations of the 2013 ASPBI were scheduled from September to December 2014.

Total response rate for Financial and Insurance Activities sector for all establishments was 95.3 percent (1,145 out of 1,201 establishments).  These include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 57 establishments responded online and none accomplished e-questionnaire. Others convert accomplished questionnaires to portable document format (PDF) and submit through e-mail.

 

Concepts and Definitions of Terms

 

Establishment is an economic unit under a single ownership control, i.e., under a single entity, engaged in one or predominantly one kind of economic activity at a single fixed location.

Total Employment is the number of persons who worked in for the establishment as of November 15, 2013.

Paid employees are all full-time and part-time employees working in or for the establishment and receiving pay, as well as those working away from the establishment and paid by and under the control of the establishment.  Included also are all employees on sick or maternity leave, paid vacation or holiday and on strike.  Excluded are directors paid solely for their attendance at meetings, consultants, workers on indefinite leave, working owners who do not receive regular pay, home workers and workers receiving pure commissions only.

Unpaid workers are working owners who do not receive regular pay, apprentices and learners without regular pay and persons working for at least 1/3 of the working time normal to the establishment without regular pay.  Excluded are silent or inactive business partners.

Compensation is the sum of salaries and wages, separation, terminal pay and gratuities paid by the establishment to its employees and total employer’s contribution to SSS/GSIS, ECC, PhilHealth, Pag-ibig, etc.

Salaries and wages are payments in cash or in kind to all employees, prior to deductions for employee’s contributions to SSS/GSIS, withholding tax, etc.  Included are total basic pay, overtime pay and other benefits.

Income or Revenue includes cash received and receivables for goods/products and by-products sold and services rendered.  Valuation is at producer prices (ex-establishment) net of discounts and allowances, including duties and taxes but excluding subsidies.

Cost refers to all expenses excluding compensation incurred during the year whether paid or payable. Valuation should be at purchaser price including taxes and other charges, net of discounts, rebates, returns and allowances. Goods received from and services rendered by other establishment of the same enterprise are valued as though purchased.

Expense refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis. Valuation is at purchaser price including taxes and other charges, net of rebates, returns and allowances. Goods and services received by the establishment from other establishments of the same enterprise are valued as though purchased.

Intermediate cost refers to expenses incurred in the production of goods such as materials and supplies purchased, fuels purchased, electricity purchased and industrial services done by others plus beginning inventory of materials, supplies and fuels less ending inventory of materials, supplies and fuels.

Value Added is gross output less intermediate input.  Gross output for Financial and Insurance Activities sector is the sum of the total revenue (less interest income, rent income from land, dividend income, royalty income and franchise income), capital expenditures of fixed assets produced on own account and change in inventories. Intermediate input is equal to the sum of the following cost items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; cost of industrial services done by others; cost of non-industrial services done by others; goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; payouts and other cost.

Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.

Change in total inventories is computed as the total of ending inventory less the total beginning inventory.

Inventories refer to the stock of goods owned by and under the control of the establishment as of a fixed date, regardless of where the stocks are located.  Valuation is at current replacement cost in purchaser prices. Replacement cost is the cost of an item in terms of its present price rather than its original cost.

Subsidies are all special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry.

E-Commerce refers to the selling of products or services over electronic systems such as the Internet Protocol-based networks and other computer networks, Electronic Data Interchange (EDI) network, or other on-line system.

  

 

 

 

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