2.106 Definition:
The local kind-of-activity unit (local KAU) is the part of a KAU which
corresponds to a local unit 
. The KAU groups all the parts of an institutional unit in its capacity as
producer contributing to the performance of an activity at class level (4 digits)
of the NACE rev. 1 and corresponds to one or more operational subdivisions of
the institutional unit. The institutional unit's information system must be capable of indicating or calculating for each
local KAU at least the value of production, intermediate consumption, compensation
of employees, the operating surplus and employment and gross fixed capital
formation.
The local unit is an institutional unit producing goods and services or a part
thereof situated in a geographically identified place.
A local KAU may correspond to an institutional unit as producer or a part
thereof; on the other hand, it can never belong to two different institutional
units.
2.107
If an institutional unit producing goods and services contains a principal
activity and also one or several secondary activities, it should be subdivided
into the same number of KAUs, and the secondary activities should be classified
under different headings from the principal activity. On the other hand, the
ancillary activities are not separated from the principal or secondary activities.
But KAUs falling within a particular heading of the classification system can
produce products outside the homogeneous group on account of secondary
activities connected with them which cannot be separately identified from available
accounting documents. Thus a KAU may carry out one or more secondary activities.