The purpose of the entrepreneurial income account is to determine a balancing item corresponding to the concept of current profit before distribution and income tax, as normally used in business accounting.
Entrepreneurial income corresponds to the operating surplus or mixed income (on the resources side):
- plus property income receivable in connection with financial and other assets belonging to the enterprise (on the resources side);
- minus interest on debts payable by the enterprise and rents payable on land and other non-produced tangible assets rented by the enterprise (on the uses side).
Property income payable in the form of dividends or reinvested earnings on direct foreign investment is not deducted from entrepreneurial income.