Statistical processing

Source data

The data source for the compilation of fixed assets consists of gross fixed capital formation from the compilation of the national accounts combined with historical stocks and assumptions regarding service lives, depreciation profiles, etc.

The compilation of gross fixed capital formation is based on a combination of business statistics, administrative registers and industry-relevant data sources. The primary source is the structural business statistics, which provide information on gross fixed capital formation by asset type in most market-producing industries. The structural business statistics supplement the compilation with information on purchases and sales of existing assets, which are included according to the national accounts definition. For asset types and industries where the structural business statistics do not sufficiently cover the level of investment, alternative sources are used, including the Building and Dwelling Register (BBR), government finance statistics, sector accounts and industry-based business accounts.

For investment in buildings and structures, turnover statistics for the construction sector and information on transaction costs in connection with transfer of ownership are also used. Investment in transport equipment is delimited using the Motor Vehicle Register. The compilation of investment in intangible assets uses sector-specific sources, including R&D statistics and product statistics for IT services. Software investment is compiled by combining information from the product statistics for the IT sector with a derived estimate for own-account production based on labour costs.

For investment in machinery and equipment, commodity and industry statistics are used through methods based on the commodity-flow approach. In sectors with a small number of large investors and in general government, data quality is assessed as high, while new enterprises with low initial activity are monitored separately to ensure full registration of large one-off investments.

In the previously used method for the compilation of stocks of dwellings and transport equipment, a direct stock approach was used. In this approach the sources are the Building and Dwelling Register (BBR), the Motor Vehicle Register, the Ship Register, the Aircraft Register, the Register of Rolling Stock and the Property Register.

For the compilation of consumption of fixed capital it is necessary to use assumptions on service lives for individual types of capital. Statistics Denmark uses service lives that largely follow European recommendations.

The overall average service lives are as follows:

From the compilation of 2021 figures onwards, minor adjustments have been made to service lives to improve alignment with European recommendations: Task Force on fixed assets and estimation of consumption of fixed capital under European System of Accounts 2010.

Frequency of data collection

Annual.

Data collection

Most data for fixed assets are collected via internal deliveries within Statistics Denmark.

Data validation

In the national accounts, general validation of the primary sources for the compilation of gross fixed capital formation is carried out. Stock estimates are reconciled with the sector and industry distributions of gross fixed capital formation, which ensures consistency with the rest of the national accounts. Consistency of consumption of fixed capital is also ensured across the national accounts and government finance statistics. A final macro assessment is performed in which the aggregated fixed asset results are checked for plausibility and coherence.

Data compilation

Data processing takes place in several steps.

The same calculation method is used for all asset types, namely the Perpetual Inventory Method (PIM). Buildings and transport equipment were previously compiled using a direct stock approach. In order to harmonise the calculation method, detailed benchmark stocks for buildings and transport equipment have been compiled so that PIM can be applied. This harmonisation was introduced in the compilation of fixed assets from the 2021 reference year onwards.

There is an accounting identity between the main variables in the compilation of fixed assets. The identity covers gross capital stock, net capital stock, gross fixed capital formation, consumption of fixed capital, nominal revaluations and other changes in the volume of non-financial assets. The variables form an accounting identity which ensures consistency between opening and closing capital stocks.

The identity can be expressed as:
net capital stock at the beginning of the year
+ gross fixed capital formation
- consumption of fixed capital
+ other changes in the volume of non-financial assets
+ nominal revaluations
= net capital stock at the end of the year.

The identity is defined in current prices. For compilations at constant prices with the same reference time, for example annual average prices or previous year’s prices, the same identity holds with the difference that nominal revaluations are zero, since these exist only in current prices.

Adjustment

No corrections of data are made besides the earlier mentioned corrections under "data validation" and "data compilation".