Provincial and Territorial Gross Domestic Product (GDP) by Income and by Expenditure Accounts

Consumption of fixed capital at replacement cost of economy, value

Consumption of fixed capital at replacement cost refers to the decline, during the course of the accounting period, in the current value of the stock of fixed assets owned and used by a producer as a result of physical deterioration, normal obsolescence or normal accidental damage. When this is calculated at replacement cost the current value of the asset is the cost of replacing it at the present time, according to its current worth. The terms depreciation, capital consumption allowance, and capital cost allowance are often used in place of consumption of fixed capital but are avoided in the System of national accounts since the term depreciation is often used in commercial accounting in the context of writing off historic costs, whereas in the System of National Accounts consumption of fixed capital is dependent on the current value of the asset. Consumption of fixed capital is calculated for all fixed assets owned by producers, but not for valuables (precious metals, precious stones, etc.) that are acquired precisely because their value, in real terms, is not expected to decline over time. Fixed assets must have been produced as outputs from processes of production as defined in the System of National Accounts. Consumption of fixed capital does not, therefore, cover the depletion or degradation of natural assets such as land, mineral or other deposits, coal, oil, or natural gas, or contracts, leases and licences.

Economy refers to the entire set of resident institutional units. It is divided into sectors that consists of groups of resident institutional units. An institutional unit is resident in a country when it has a centre of economic interest in the economic territory of that country. It is said to have a centre of economic interest when there exists some location - dwelling, place of production or other premises - within the economic territory on, or from, which it engages, and intends to continue to engage, in economic activities and transactions on a significant scale either indefinitely or over a finite period of time.

The data for this variable are reported using the following measurements:

• Canadian dollar at current prices