Table 8.4 Account II.1.2: Allocation of primary income account

8.21 Unlike the generation account, the allocation of primary income account concerns the resident units and institutional sectors as recipients rather than producers of primary income.

8.22 'Primary income’ is the income which resident units receive by virtue of their direct participation in the production process, and the income receivable by the owner of a financial asset or a tangible non-produced asset in return for providing funds to, or putting the tangible non-produced asset at the disposal of, another institutional unit.

8.23 The allocation of primary income account (II.1.2) can be calculated only for the institutional sectors and sub-sectors because, in the case of industries, it is impossible to break down certain flows connected with financing (capital loans and borrowings) and assets.

8.24 As financial intermediation services (FISIM) are alloced to user sectors, the item "interest" in the allocation of primary income account corresponds to interest payable and receivable after FISIM has been deducted from actual payables by borrowers and added to actual receivables by lenders.

8.25 The allocation of primary income account is broken down into an entrepreneurial income account (II.1.2.) and an allocation of other primary income account (II.1.2.).