Capital construction of establishment


Capital construction refers to expenditures on construction that represent a process of human endeavour resulting in the erection, assembly, completion of free standing, static buildings or other types of structures, generally on a permanent foundation, bedding or location. Construction expenditures excludes the purchase price of land but includes outlays for land servicing and site preparation. Construction also includes modifications, additions and major renovations, conversions and alterations where either a structural change takes place or the life of an existing asset is extended beyond its normal life expectancy. Such structures may be above or below the surface of the earth for the passage or storage of materials and/or people. A structure, not classified as machinery, in the form of a building or "other structure" may be defined as an output of construction activity. Such outputs are produced to shelter, support, retain or convey something to someone. All construction activity can be categorized as either building construction or engineering construction.

Establishment refers to the level at which accounting data required to measure production is available (principal inputs, revenues, salaries and wages). The establishment, as a statistical unit, is defined as the most homogeneous unit of production for which the business maintains accounting records from which it is possible to assemble all the data elements required to compile the full structure of the gross value of production (total sales or shipments, and inventories), the cost of materials and services, and labour and capital used in production.


Relation to previous version

  • Capital construction of establishment May 11, 2016 to current

    This is the current version.

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