Definition: Generation of income account
The generation of income account presents the sectors, sub-sectors and industries which are the source, rather than the destination, of primary income.
It analyses the extent to which value added can cover compensation of employees and other taxes less subsidies on production. It measures the operating surplus, which is the surplus (or deficit) on production activities before account has been taken of the interest, rents or charges which the production unit:
a) must pay on financial assets or on tangible non-produced assets which it has borrowed or rented;
b) must receive on financial assets or on tangible non-produced assets of which it is the owner.
Eurostat, "European System of Accounts - ESA 1995", Office for Official Publications of the European Communities, Luxembourg, 1996