Glossary – F

Canadian System of National Accounts glossary index – F

Canadian System of National Accounts glossary – F
Term Definition
Factor cost A valuation reflecting the cost of production factors (labour and capital). It corresponds to the value remaining after the deduction from market prices of all applicable taxes and subsidies.
 
Farm inventories Farm output stored on farms; includes grains, tobacco, potatoes and livestock.
 
Federal general government The government whose political authority extends over the entire territory of the country. The central government can impose taxes on all resident citizens and resident institutional units and on non-resident units engaged in economic activities within the country. Typically, it is responsible for providing collective services for the community as a whole, such as national defence. In addition, it may provide services for the benefit of individual households, such as health and education, and it may make transfers to other institutional units.

See also: Classification of Institutional Units by Sectors
 
Component of: General government sector

Composed of: Federal government, Federal non-autonomous pension plans

Reference: About the government finance statistical program

Source: Financial Management System, Catalogue no. 68F0023

Notes: This reflects the System of National Accounts 2008 definition. Prior to the Canadian System of National Accounts 2012 historical revision, the term represented the current definition of Federal government.

French: Administration publique générale fédérale
Federal government The group of units consisting of all government units belonging to the federal government and all non-market, non-profit institutions controlled and mainly financed by the federal government.

See also: Institutional sectors; Classification of Institutional Units by Sectors; Guide to the Public Sector of Canada, Catalogue no. 12-589
 
Component of: Federal general government

Reference: About the government finance statistical program

Source: Financial Management System, Catalogue no. 68F0023

Notes: This reflects the System of National Accounts 2008 definition. Prior to the Canadian System of National Accounts 2012 historical revision, the term represented the current definition of Federal general government.

French: Administration publique fédérale
Final consumption Goods and services used by individual households or the community to satisfy their individual or collective needs or wants. Not to be confused with intermediate consumption which consists of goods and services used in the course of production within the accounting period.

See also: Final consumption expenditure
 
Component of: Final demand

Composed of: Commodities

Reference: Gross Domestic Product by Industry, Sources and Methods, Catalogue no. 15-547

Source: System of National Accounts 2008, paragraph 1.52.

French: Consommation finale
Final consumption expenditure The amount of expenditure on consumption goods and services. Household final consumption expenditure consists of the expenditure, including expenditure whose value must be estimated indirectly, incurred by resident households on individual consumption goods and services, including those sold at prices that are not economically significant and including consumption goods and services acquired abroad. General government final consumption expenditure consists of expenditure, including expenditure whose value must be estimated indirectly, incurred by general government on both individual consumption goods and services and collective consumption services. Final consumption expenditure of non-profit institutions serving households consists of the expenditure, including expenditure whose value must be estimated indirectly, incurred by resident non-profit institutions serving households on individual consumption goods and possibly on collective consumption services.

See also: Final consumption, Actual final consumption, Final demand
 
Component of: Final demand

Reference: Gross Domestic Product by Industry, Sources and Methods, Catalogue no. 15-547

Source: System of National Accounts 2008 paragraphs 9.2, 9.7, 9.113, 9.114, 9.115.

Notes: Introduced with the Canadian System of National Accounts 2012 historical revision.

French: Dépenses de consommation finale
Final demand Transactions that involve purchases of produced goods and services for final uses. A final use is when a good or service is not entirely used in the reference year as an intermediate input into the production of some other good or service. Transactions of goods and services that are completely used to produce other goods and services are intermediate inputs (or use). However, when purchased by households, all goods and services are considered final expenditure and are classified as either consumption expenditure or investment expenditure, depending on the good or service. Household expenditures on housing, the cost of acquisition of residential property (such as real estate commissions and legal costs) and repair construction are considered investment. Household expenditures are classified further into durable, semi-durable, non-durable and services. Household expenditure on durables include capital items that last for long periods, such as furniture and automobiles, that are sometimes thought of as investment goods.

See also: Final consumption, Actual final consumption, Final consumption expenditures
 
Final domestic demand The sum of households' and non-profits institutions serving households' Final consumption, net government current expenditure on goods and services, government gross fixed capital formation and business gross fixed capital formation.

See also: Final consumption, Final consumption expenditures
 
Final domestic expenditure The sum of all expenditure within the economic territory of Canada, consisting of household expenditure (including spending by foreigners travelling in Canada), non-profit institutions serving households' expenditures, gross fixed capital formation, additions to, or withdrawals from, inventories and current expenditure of governments.

See also: Final consumption, Final consumption expenditures
 
Financial account This account tracks net lending or net borrowing by means of changes in holdings of financial assets and liabilities. The sum of these changes is conceptually equal in magnitude, but on the opposite side. The financial account shows how net lending or borrowing takes place by recording all transactions in financial instruments. Transactions in financial assets that are shown as changes in assets exactly balance the amounts shown as changes in liabilities and net worth, because when all transactions of resident units with other resident units or with non-resident units are taken into account, there is no net lending or borrowing left unexplained. It does not have a balancing item carried forward to another account.

See also: Account
 
Component of: Sequence of accounts

Composed of: Transactions are presented under three functional classes: direct investment, portfolio investment and other investment

Reference: Canada's international investment position, Catalogue no. 67-202

Source: System of National Accounts 2008 paragraphs 1.20b, 11.1, 16.21

Notes: Discontinued with the Canadian System of National Accounts 2012 historical revision.

French: Compte financier
Financial and Wealth Accounts The Financial and Wealth Accounts are comprised of the Financial Flow Accounts and the National Balance Sheet Accounts.

See also: Account, Sequence of accounts; About the financial and wealth accounts
 
Financial assets Financial assets consist of all financial claims, shares or other equity in corporations plus gold bullion held by monetary authorities as a reserve asset. Gold bullion held by monetary authorities as a reserve asset is treated as a financial asset even though the holders have no claim over other designated units. Shares are treated as financial assets even though the financial claim their holders have on the corporation is not a fixed or predetermined monetary amount.
 
Component of: Assets

Composed of: Official international reserves, All deposits (currency, bank, other institutions, foreign), Debt securities, Loans, Equity and investment funds, Life insurance and pensions, Other account receivables

Reference: Canada's balance of payments, data quality, concepts and definitions, Catalogue no. 67-001

Source: System of National Accounts 2008, paragraph 3.36

French: Actifs financiers
Financial claim A financial claim is the payment or series of payments due to the creditor by the debtor under the terms of a liability. Like the liabilities, the claims are unconditional. In addition, a financial claim may exist that entitles the creditor to demand payment from the debtor but whereas the payment by the debtor is unconditional if demanded, the demand itself is discretionary on the part of the creditor.

See also: Financial account, Financial assets, Financial claim, Financial instruments, Financial intermediation services indirectly measured (FISIM)
 
Source: System of National Accounts 2008, paragraph 11.7

French: Créance financière
Financial corporation All resident corporations that are principally engaged in providing financial services, including insurance and pension funding services, to other institutional units.

See also: Financial account, Financial assets, Financial claim, Financial instruments, Financial intermediation services indirectly measured
 
Component of: Corporation

Source: System of National Accounts 2008, paragraph 4.98

French: Société financière
Financial corporations sector The financial corporations sector includes all resident corporations and quasi-corporations whose principal activity is providing financial services including financial intermediation, insurance and pension fund services, and units that provide activities that facilitate financial intermediation. In addition, the sector includes not-for-profit institutions engaged in market production of a financial nature, such as those financed by subscriptions from financial enterprises whose role is to promote and serve the interests of those enterprises.

See also: Corporations, Quasi-corporations, Market producers, Institutional Sectors; Classification of Institutional Units by Sectors
 
Component of: The sectors of the Canadian economy

Composed of: The Monetary Authorities sub-sector, the Other Depository Corporations sub-sector, the Other Financial intermediaries (except insurance corporations and pension funds) sub-sector, the Financial auxiliaries sub-sector and the Insurance corporations and Pension funds sub-sector.

Source: System of National Accounts 2008, paragraph 4.29

Notes: A sector of the economy introduced with the Canadian System of National Accounts 2012 historical revision.

French: Secteur des sociétés financières
Financial derivatives Financial instruments that are linked to a specific financial instrument or indicator or commodity, through which specific financial risks can be traded in financial markets in their own right. The value of a financial derivative derives from the price of the underlying item: the reference price. The reference price may relate to a commodity, a financial asset, an interest rate, an exchange rate, another derivative or a spread between two prices. The derivative contract may also refer to an index or a basket of prices. Unlike debt instruments, no principal amount is advanced to be repaid and no investment income accrues. Examples are futures, forwards, options, warrants and swaps. In the Financial Flows Accounts and in the National Balance Sheet Accounts they are classified in the Other asset, Other liability category.

See also: Balance sheet
 
Component of: Other receivables

Source: System of National Accounts 2008, paragraph 11.111; Canadian System of National Accounts

Notes: Introduced with the Canadian System of National Accounts 2012 historical revision.

French: Produits financiers dérivés
Financial Flow Accounts Record transactions that involve financial assets and liabilities and taking place between resident institutional units and between resident institutional units and non-residents.

See also: Capital and Financial Accounts; Overview of the Financial Flow Accounts
 
Notes: Introduced with the Canadian System of National Accounts 2012 historical revision.

French: Compte des flux financiers
Financial flows Record the net transactions in a class of assets and liabilities between two periods.

See also: Capital and Financial Accounts
 
Financial instrument Within the System of National Accounts, the term instrument may be used to relate to the asset or liability aspect of an item on the financial balance sheet. In monetary statistics, some off-balance sheet items may also be described as instruments. Financial instruments encompass securities (generally marketable) and other financial instruments (generally non-marketable). Financial instruments can be part of direct, portfolio or other investment in the balance of payments or international investment position depending upon the instrument and the relationship between the issuer and the holder.

See also: International Investment Position, Balance Sheet Accounts, Financial Flow Accounts, Canada's International Investment Position, Catalogue no. 67-202
 
Source: System of National Accounts 2008, paragraph 11.27; Canadian System of National Accounts

French: Instruments financiers
Financial intermediation services indirectly measured Financial institutions derive income from the interest rate spread between loans and deposits, in addition to explicit charges for selected financial services they provide. This spread represents an implicit charge to borrowers and depositors for services that are provided by financial institutions without explicit fees. This implicit service charge is referred to as financial intermediation services indirectly measured (FISIM).

See also: Production
 
Source: System of National Accounts 2008, paragraphs 17.228, 6.163

French: Services d'intermédiation financière indirectement mesurés
Financial leases A financial lease is one where the lessor as legal owner of an asset passes the economic ownership to the lessee who then accepts the operating risks and receives the economic benefits from using the asset in a productive activity.
 
Source: System of National Accounts 2008, paragraph 17.304

French: Crédits-baux financiers
Financial Management System A conceptual and analytical accounting framework designed to produce statistical series that are both consistent and compatible. It encompasses the financial transactions and employment data of the public sector in Canada. In its broad outline, the Financial Management System (FMS) bears a close relationship to the international standard as described in the 2001 International Monetary Fund manual (IMF publication: Government Finance Statistics Manual, GFS 2001).

See also: Government, Institutional sectors
 
Reference: About the government finance statistical program; Guide to the Public Sector of Canada, Catalogue no. 12-589; Financial Management System 2009, Catalogue no. 68F0023

Source: Financial Management System, Catalogue no. 68F0023

Notes: Used to compile government sector financial statistics up to and included fiscal year ending March 31, 2009 for quarterly data, and up to and including December 31, 2008 for annual data.

French: Système de gestion financière
Financial transaction A transaction involving the acquisition or disposal of a financial asset
 
Fines and penalties Fines and penalties are compulsory current transfers imposed on units by courts of law or quasi-judicial bodies for violations of laws or administrative rules. Out-of-court agreements are also included. Forfeits are amounts that were deposited with a government unit pending a legal or administrative proceeding and that have been transferred to the government unit as part of the resolution of that proceeding.

See also: Classification of government revenues and expenditures in Financial Management System, Catalogue no. 68F0023
 
Component of: Government account

Source: System of National Accounts 2008, paragraph 8.135

French: Amendes et pénalités
Fisher chain index The geometric mean of the Laspeyres and Paasche chain indices. The Fisher chain index treats two periods symmetrically. The real gross domestic product indices that are used to determine variations in quantity for the measurement of productivity are based on Fisher chain indices.

See also: Paasche index, Laspeyres index
 
Fisher index Geometric mean of the Laspeyres index and the Paasche index.
 
Fisher price index A Fisher price index is the geometric mean of the Laspeyres price index and Paasche price index.

See also: Paasche price index, Laspeyres price index
 
Fisher volume index Geometric mean of the Laspeyres volume index and the Paasche volume index.

See also: Paasche volume index, Laspeyres volume index
 
Fixed asset Fixed assets are produced assets that are used repeatedly or continuously in production processes for more than one year. The distinguishing feature of a fixed asset is not that it is durable in some physical sense, but that it may be used repeatedly or continuously in production over a long period of time, which is taken to be more than one year. Some goods, such as coal, may be highly durable physically but cannot be fixed assets because they can be used once only. Fixed assets include not only structures, machinery and equipment that are used repeatedly or continuously in production but also land, subsoil assets, water resources and software.

See also: Classification of assets, Gross fixed capital formation, Balance sheet
 
Component of: Produced asset

Reference: Gross Domestic Product by Industry, Sources and Methods, Catalogue no. 15-547

Source: System of National Accounts 2008, paragraph 10.11

French: Actifs fixes
Fixed capital See fixed assets.
 
Source: Guide to the Income and Expenditure Accounts, Catalogue no. 13-017

French: Capital fixe
Fixed-weighted price indexes Also known as Laspeyres indexes, these are price indexes where a fixed pattern of expenditure from some base period is used to aggregate the detailed price indexes in each period.

See also: Laspeyres price index
 
Flow Reflects the creation, transformation, exchange, transfer, or extinction of economic value and involves a change in the volume, composition, or value of an entity's assets and liabilities.
 
Foreign currency and deposit Holdings of foreign currency and foreign currency denominated deposits at chartered banks in Canada, foreign branches and subsidiaries of Canadian chartered banks, foreign banks and other foreign deposit-taking institutions.

See also: International accounts
 
Foreign investments All marketable financial instruments (bonds, short-term paper and shares) which are liabilities of the non-resident sector (foreign governments and corporations) and assets of domestic sectors.

See also: International accounts
 
Free-on-board valuation Valuation method recommended in The balance of payments referring to the market value of the goods at the point of uniform valuation—the customs border of the economy from which the goods are exported. That is, the goods are valued free on board at the border.
 
Full-time employee Any employee who normally works the scheduled hours in the standard work week of the establishment.
 
Full-time equivalent employment The number of fulltime equivalent jobs, defined as total hours actually worked by all employed persons divided by the average number of annual hours actually worked in full-time jobs.

See also: Job
 
Reference: About gross domestic product; About the tourism account

Source: System of National Accounts 2008, paragraph 19.43; Human resource module of the tourism satellite account, 2010, Catalogue no. 13-604, no. 69

French: Emplois équivalents temps plein
Full-time equivalent jobs Total hours worked divided by average annual hours worked in full-time jobs. This can also be described as full-time-equivalent work-years. It is a less precise alternative to expressing labour input in terms of total hours worked.

See also: Job
 
Full-time job One in which a person usually works 30 hours or more per week.

See also: Job
 
Fully-consolidated basis The basis of reporting for Canada's balance of payments and international investment position. Entities are surveyed for their inward and outward direct investment data on a fully-consolidated basis. As such, survey data, as a matter of principle, cover all directly and indirectly owned subsidiaries, associates and branches.

See also: International accounts
 
Functional classification The classification used to identify the purpose, or socioeconomic objective, for which an expense was incurred or a non-financial asset was acquired.

See also: Financial Management System, Catalogue no. 68F0023
 
Fund accounting An accounting system in which a self-balancing group of accounts is provided, for each accounting unit established by legal, contractual or voluntary action, especially in government units and non-profit organizations. Examples of the types of funds that are accounted for separately by government units are the capital fund, the reserve fund, the current, operating, general or revenue fund, the sinking fund, and the trust fund.
 
Funded pension plan A pension plan that accumulates dedicated assets to cover the plan's liabilities.
 
Funds Monies dedicated to the support of specific services.
 
Source: Financial Management System, Catalogue no. 68F0023

French: Fonds
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