Glossary:Gross operating surplus (GOS) - NA
Gross operating surplus, abbreviated as GOS, can be defined in the context of national accounts as a balancing item in the generation of income account representing the remuneration of the production factor capital.
GOS differs from profits shown in company accounts for several reasons. Only a subset of total costs are subtracted from gross output to calculate the GOS. Essentially GOS is gross output less the cost of intermediate goods and services to give gross value added, and less compensation of employees and taxes and subsidies on production and imports. It is gross because it makes no allowance for consumption of fixed capital (CFC). By deducting CFC from GOS one calculates net operating surplus (NOS).
A similar concept for unincorporated enterprises (e.g. small family businesses like farms and retail shops or self-employed taxi drivers, lawyers and health professionals) is gross mixed income. Since in most such cases it is difficult to distinguish between income from labour and income from capital, the balancing item in the generation of income account is "mixed" by including both, the remuneration of the capital and labour (of the family members and self-employed) used in production. By deducting CFC from gross mixed income one obtains net mixed income.
Further information
- ESA 2010
- Understanding National Accounts, Lequiller F., Blades D., Paris, OECD 2014