Fixed Capital Flows and Stocks
Detailed information for 2009
Status:
Active
Frequency:
Annual
Record number:
2820
This program produces annual estimates of fixed capital formation (capital investment flows), gross and net capital stocks and depreciation by industry, by aggregate asset type, and by province and territory.
Data release - November 24, 2009
Description
This program produces annual estimates of fixed capital formation (capital investment flows), gross and net capital stocks and capital depreciation by industry, and by province and territory. The estimates are produced for building, engineering and machinery and equipment asset groupings and for 22 aggregate asset types. The estimates are available historically in constant, current, chained (Fisher) and original (book value) dollars.
The principal external clients are:
- Finance Canada uses the fixed capital formation estimates in the provincial equalization payments formula. Finance Canada also uses capital depreciation and capital investment estimates to create and assess fiscal policy.
- Bank of Canada uses the fixed capital formation and capital depreciation estimates in evaluating macroeconomic policy and the impact of fiscal tax policy.
- Industry Canada and Finance Canada use measures on fixed capital formation, stocks and depreciation in studies of inter-industry and international competitiveness, in estimating potential output and in determining investment needs by industry.
The principal internal clients are:
- The Canadian System of National Accounts uses the fixed capital formation and depreciation estimates as an input in Gross Domestic Product and the Input-Output national and provincial tables.
- The capital stock estimates appear in the national balance sheet accounts.
- The fixed capital formation and stock estimates are also required for the production of the capacity use measures and in the calculation of multi-factor productivity.
Reference period: Calendar year
Subjects
- Construction
- Machinery and equipment
- Non-residential building construction
- Non-residential engineering construction
Data sources and methodology
Target population
The target population comprises all business and government entities operating in Canada. Outlays for used Canadian assets are excluded since they constitute a transfer of assets within Canada and have no effect on the aggregates of our domestic inventory. Assets imported from outside Canada are included as they increase our domestic inventory.
Instrument design
This methodology does not apply.
Sampling
This methodology does not apply.
Data sources
Data are collected from other Statistics Canada surveys and/or other sources.
Estimates of investment are benchmarked to the Supply, Use and Input-Output Tables (record number 1401), by industry and asset, and to the Provincial and Territorial Gross Domestic Product by Income and by Expenditure Accounts (record number 1902). Data sources include capital expenditure estimates, by industry and asset, from the Annual Capital and Repair Expenditures Survey: Actual, Preliminary Actual and Intentions (record number 2803) and prices from Producer Prices Division.
Error detection
This methodology type does not apply to this statistical program.
Imputation
This methodology does not apply.
Estimation
The perpetual inventory method (PIM) is used by Statistics Canada to measure capital stocks. Investment expenditures by assets and by industry are accumulated to obtain estimates of capital stock in any particular year, taking into consideration the service lives of the assets. The PIM requires information on the value of investment, price indices for capital goods, service lives, and methods of depreciation. The essence of the perpetual inventory method is to add investment expenditures to the capital stock each year and to subtract depreciation.
For a detailed discussion of the methodology for estimating capital stocks, refer to the linked document in the Documentation section below.
Quality evaluation
Data are analyzed for time series consistency, links to current economic events, issues arising from the source data, and respect to coherence. Any irregularities identified are carefully analyzed and any corrections are made before the official release.
Furthermore, the 1987 Capital and Repair Expenditures questionnaire also included a question asking respondents to report the total value of their fixed assets i.e. the cost of accumulated capital (gross book value) and accumulated depreciation. This question was used to establish benchmarks to assess the validity of the capital stock estimates produced via the PIM.
Disclosure control
Statistics Canada is prohibited by law from releasing any information it collects which could identify any person, business, or organization, unless consent has been given by the respondent or as permitted by the Statistics Act. Various confidentiality rules are applied to all data that are released or published to prevent the publication or disclosure of any information deemed confidential. If necessary, data are suppressed to prevent direct or residual disclosure of identifiable data.
Revisions and seasonal adjustment
Preliminary estimates are released in the fall of the reference period. The release comprises revisions to the five previous years. Statistical revisions are carried out in order to incorporate the most recent information from surveys, taxation statistics, public accounts, etc., as well as from the annual benchmarking process of the Input-Output Accounts as reported by the Provincial Economic Accounts program -- record number 1902.
Data accuracy
No direct measures of the margin of error in the estimates can be calculated. The quality of the estimates can be inferred from analysis of revisions and from a subjective assessment of the data sources and methodology used in the preparation of the estimates.
Documentation
- Investment Flows and Capital Stock - Methodology
- Non-Residential Fixed Assets 2007 Revision
- Date modified: