Glossary – N

Canadian System of National Accounts glossary index – N

Canadian System of National Accounts glossary – N
Term Definition
National Balance Sheet Accounts An integrated set of balance sheets (non-financial assets, financial assets, liabilities, and net worth) for the five major sectors of the economy.

See also: Balance sheet, Account, Sequence of accounts
 
National net worth National wealth less net foreign liabilities (what is owed to non-residents less what non-residents owe to Canadians). Alternatively, it is the sum of the net worth of the households, non-profit institutions serving households, corporate, and general government sectors.
 
Source: System of National Accounts 2008, paragraph 26.76

French: Valeur nette nationale
National wealth The sum of the non-financial assets in the economy, it is comprised of produced assets (residential structures, non-residential structures, machinery and equipment, consumer durable goods, inventories) and land. A broader measure of wealth includes the value of natural resources—timber and major deposits of subsoil assets.

See also: National Balance Sheet Accounts, Natural resource wealth, Produced capital
 
Natural capital The source of material resources and environmental services that are necessary for economic activity and human well-being.

See also: Produced capital, National wealth
 
Natural resources Naturally occurring resources such as water resources, uncultivated forests and deposits of minerals that have an economic value. In Canada, the electromagnetic spectrum is considered a natural resource. Land is a separate asset class in the National Balance Sheet Accounts.
 
Component of: Non-produced assets

Reference: About the environmental and resource accounts; Concepts, Sources and Methods of the Canadian System of Environmental and Resources Accounts, Catalogue no. 16-505

Source: System of National Accounts 2008, paragraph 10.15

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

French: Ressources naturelles
Natural resource wealth The value of a nation's holdings of natural resources.
 
Net A gross value minus some other value. In the case of net domestic product, “net” refers to gross domestic product after deducting consumption of fixed capital. In the case of the sector accounts, “net” refers to amounts received by the sector minus amounts paid by the sector.
 
Source: Gross Domestic Product by Industry, Sources and Methods, Catalogue no. 15-547

French: Net
Net acquisition of existing assets A sector's purchases less sales of used fixed assets and land. Business purchases less sales of natural resources, resource rights and intangible assets are also included. Does not apply to the non-resident sector which, by definition, acquires only financial investments. Abbreviated as existing assets in the capital and financial accounts.

See also: Institutional sectors, International Accounts
 
Net acquisition of financial assets (Balance of Payments' Financial Account) The difference between the acquisition and disposal of foreign assets in the Financial Account of the Balance of Payments. A positive sign refers to an increase in foreign assets held by residents while a negative sign refers to a reduction in foreign assets.
 
Net borrowing (Balance of Payments' Financial Account) The overall balance on the financial account of the Balance of Payments, which is the difference between net acquisition of financial assets and net incurrence of liabilities. Net borrowing means that the economy borrows funds from the rest of the world, while net lending means that the economy supplies funds to the rest of the world. In concept, this value is equal to the net lending or net borrowing derived from the balance of the current and capital accounts of the Balance of Payments. It is also equal to the net lending or net borrowing derived from the sum of the resident sectors of the Income and Expenditure Accounts.
 
Net capital transfers The difference between the current transfers a sector receives from other sectors less the current transfers it pays to other sectors

See also: Institutional sectors
 
Net current transfers The difference between the current transfers a sector receives from other sectors less the current transfers it pays to other sectors.
 
Net debt (of government) All financial liabilities minus all financial assets of general government. Financial assets of the general government sector have a corresponding liability existing outside that sector. The exceptions are monetary gold and special drawing rights, financial assets or liabilities for which there is no counterparty in the domestic sectors. The counterparty for monetary gold and special drawing rights is the non-resident sector.
 
Net domestic product Gross domestic product less the consumption of fixed capital.
 
Reference: Guide to the Income and Expenditure Accounts, Catalogue no. 13-017, Gross Domestic Product by Industry, Sources and Methods, Catalogue no. 15-547

Source: System of National Accounts 2008, paragraph 16.52

French: Produit intérieur net
Net domestic product at basic prices Gross domestic product less the consumption of fixed capital, less taxes on products and production.

See also: Gross national income
 
Component of: Gross national income

Reference: Guide to the Income and Expenditure Accounts, Catalogue no. 13-017

Source: Canadian System of National Accounts; System of National Accounts 2008, paragraph 16.52

French: Produit intérieur net au prix de base
Net financial debt The excess of liabilities over financial assets.
 
Net financial investment The net lending, or borrowing, of a sector can be measured either through incomes and expenditures or through financial transactions. Under the financial transactions approach, net lending is called net financial investment. It is equal to a sector's transactions in financial assets less its transactions in liabilities.

See also: Net lending, Capital and financial accounts, Institutional sectors
 
Net financial wealth The excess of financial assets over liabilities.
 
Net income of unincorporated business The sum of net accrued income received by farm operators from farm production and net income of non-farm unincorporated business, including rental.
 
Net income from sales Total revenue from sales less related expenses during the fiscal year
 
Net income received by farm operators from farm production Gross proceeds from the sale of farm products, plus subsidies on a cash basis, plus the imputed value of farm output consumed by farming households, plus investment in farm inventories, less farm operating expenses and consumption of fixed capital on farm buildings and equipment. Excludes other types of income, such as net rental or interest receipts, and profits of incorporated farms.

See also: Accrued net income of farm operators from farm production
 
Net incurrence of liabilities (Balance of Payments' Financial Account) The difference between the incurrence and repayment of liabilities in the Financial Account of the Balance of Payments. A positive sign refers to an increase in Canadian liabilities to non-residents while a negative sign refers to a reduction in Canadian liabilities.
 
Net indirect taxes on factors of production Taxes less subsidies that apply to the employment of labour and ownership or use of land, structures and other assets used for production purposes.
 
Notes: Discontinued with the Canadian System of National Accounts 2012 historical revision.

French: Impôts indirects nets sur les facteurs de production
Net international investment position Represents the stock of external financial assets minus the stock of external liabilities. The net position shows what the economy owns in relation to what it owes to non-residents.
 
Net investment income from non-residents Investment income received from, less investment income paid to, non-residents.
 
Net lending The difference between changes in net worth due to saving and capital transfers and net acquisitions of non-financial assets (acquisitions less disposals of non-financial assets, less consumption of fixed capital). If the amount is negative it represents net borrowing.

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

Source: System of National Accounts 2008, paragraph 10.28

French: Prêt net
Net lending (Balance of Payments' Financial Account) The overall balance on the financial account of the Balance of Payments, which is the difference between net acquisition of financial assets and net incurrence of liabilities. Net lending means that the economy supplies funds to the rest of the world while net borrowing means that the economy borrows funds from the rest of the world. In concept, this value is equal to the net lending to net borrowing derived from the balance of the current and capital accounts of the balance of payments. It is also equal to the net lending to net borrowing derived from the sum of the resident sectors of the national accounts.
 
Net mixed income Gross mixed income less consumption of fixed capital
 
Notes: Introduced with Canadian System of National Accounts 2012 historical revision.

French: Revenu mixte net
Net national income at basic prices Net domestic product at basic prices plus net investment income of non-residents.
 
Net operating surplus Gross operating surplus less consumption of fixed capital.
 
Net property income The difference between property income received by a sector and the property income paid by a sector.
 
Net reinvested earnings on direct investment Reinvested earnings are profits earned on, less dividends received from, direct foreign investment. From 1961, equity income from direct foreign investment is recorded on an accrual rather than cash basis in the Balance of International Payments. Net reinvested earnings on direct investment are defined as reinvested earnings on direct investment on foreign direct investment in Canada less reinvested earnings on direct investment on Canadian direct investment abroad. Net reinvested earnings on direct investment gives rise to an additional reconciliation item between the Canadian Balance of International Payments Accounts and the national Income and Expenditure Accounts, in which this change has not been incorporated.
 
Net rental income Earnings of persons, after expenses, arising from the ownership of residential property, whether rented or owner-occupied, and from the rental of non-residential property.
 
Net saving The current income of a sector, less its current expenditure. Includes current transfers but excludes consumption of fixed and capital transfers.

See also: Institutional sectors
 
Source: Guide to the Income and Expenditure Accounts, Catalogue no. 13-017

Notes: Synonym of saving.

French: Épargne nette
Net worth The value of all the assets (non-financial and financial) owned by an institutional unit or sector less the value of all its outstanding liabilities.
 
Source: System of National Accounts 2008, paragraph 13.4

French: Valeur nette
New issue Transaction in securities representing the amount received by the issuer at the time of issue.
 
Non-autonomous government funds Funds that cannot function autonomously. They are public monies set aside to support specific purposes and managed by the resources within a government ministry or department. They do not have their own employees.

See also: Classification of Institutional Units by Sectors
 
Reference: About the government finance statistical program

Source: Financial Management System, Catalogue no. 68F0023

Notes: Discontinued with the Canadian System of National Accounts 2012 historical revision. Prior to this revision this term was referred to as Non-autonomous general government funds.

French: Fonds non autonome des administrations publiques
Non-autonomous government organizations Sub-institutional units that cannot function independently from their parent government. They operate within a government ministry or department. There are no separate books of account, rather their activities are part of the ministry's or department's financial transactions. The employees are “dedicated” to the non-autonomous government organization program but are not its own employees.

See also: Autonomous general government funds; Classification of Institutional Units by Sectors
 
Reference: About the government finance statistical program; Guide to the public sector of Canada, Catalogue no. 12-589

Source: Financial Management System, Catalogue no. 68F0023

Notes: Introduced with the Canadian System of National Accounts 2012 historical revision. Prior to this revision this term was referred to as Non-autonomous general government organizations.

French: Organisation gouvernementale non autonome
Non-autonomous pension fund See non-autonomous pension plan.

See also: Autonomous pension funds; Guide to the Pension Satellite Account, Catalogue no. 13-599; About the government financial statistics program
 
Component of: Pension fund

Reference: Guide to the public sector of Canada, Catalogue no. 12-589, Guide to the Pension Satellite Account, Catalogue no. 13-599

Source: Financial Management System, Catalogue no. 68F0023

French: Régime de retraite non provisionné
Non-autonomous pension plan Pension plans that do not constitute separate institutional units. With this type of plan the employer maintains a special reserve that is segregated from its other reserves. These pension reserves and/or funds are treated as assets that belong to the beneficiaries and not the employer.
 
Non-business sector Resident institutional units that do not belong to the business sector. It is composed of all non-market producers.

See also: Non-market producers, Institutional sectors
 
Non-durable goods Goods which are used up entirely in less than a year, assuming normal or average rate of physical usage.
 
Non-durable manufacturing Manufacturers of non-durable goods. Includes manufacturers of food, beverages, tobacco products, rubber products, plastic products, leather and allied products, primary textile and textile products, clothing, paper and allied products, printing, publishing and allied products, refined petroleum and coal products, chemicals and chemical products.
 
Non-farm inventories Inventories of raw materials, goods-in-process and finished products of non-farm businesses.
 
Non-financial asset An asset other than a financial asset. Two different categories are distinguished: produced assets and non-produced assets. a) produced assets are non-financial assets that have come into existence as outputs from production processes that fall within the production boundary of the Canadian System of National Accounts. b) non-produced assets are non-financial assets that have come into existence in ways other than through processes of production.
 
Component of: Asset

Composed of: Produced assets, Non-produced assets

Reference: About the government finance statistical program; Financial Management System, Catalogue no. 68F0023

Source: System of National Accounts 2008, paragraph 10.9

French: Actif non financier
Non-financial capital acquisition Includes the gross fixed capital formation of a sector (fixed capital), plus its investment in inventories and its net acquisition of existing assets. Does not apply to the non-resident sector which, by definition, can only engage in financial investment.

See also: Institutional sectors
 
Non-financial corporation Corporations whose principal activity is the production of market goods or non-financial services.

See also: Sequence of accounts; Classification of Institutional Units by Sectors
 
Component of: Corporation

Source: System of National Accounts 2008, paragraph 4.94

French: Sociétés non financières
Non-financial corporations sector Includes a) all resident non-financial corporations (as defined in the System of National Accounts and not restricted to legally constituted corporations), regardless of the residence of their shareholders; b) branches of non-resident enterprises that are engaged in non-financial production on the economic territory on a long-term basis; and c) resident non-profit institutions that are market producers of goods or non-financial services.

See also: Institutional sectors
 
Component of: the Canadian economy

Reference: Classification of Institutional Units by Sectors; Satellite account on non-profit and volunteering 1997-2007, Catalogue no. 13-015

Source: System of National Accounts 2008, paragraph 4.94.

French: Secteur des sociétés non financières
Non-immigrant A non-immigrant is a person who is a Canadian citizen at birth.
 
Non-manufacturing activities Many manufacturing establishments engage in non-manufacturing activities in addition to their manufacturing activities. These include merchandising of goods purchased for resale without further processing, the carrying out of construction with their own labour force for their own use, production, major repair or improvement of machinery and equipment by own labour force for own use, lease or rental of machinery and equipment manufactured by own labour force, operating cafeterias and lunch counters, laboratories, etc.
 
Non-market extension The Satellite Account of Non-profit Institutions and Volunteering includes a non-market extension to measure and evaluate the economic value of volunteer work. These labour services are a significant resource which volunteers provide as a transfer in kind to non-profit organizations.
 
Non-market output Goods and individual or collective services produced by non-profit institutions serving households or government that are supplied free, or at prices that are not economically significant, to other institutional units or the community as a whole. Although this output is shown as being acquired by government and non-profit institutions serving households in the use of income account, it should not be confused with production for own use. The expenditure is made by governments and by non-profit institutions serving households but the use of individual goods and services is by households, and the use of collective services by households or other resident institutional units.

See also: Market output
 
Component of: Output

Source: System of National Accounts 2008, paragraph 6.128

French: Production non marchande
Non-market producers Establishments owned by government units or non-profit institutions serving households that supply goods or services free, or at prices that are not economically significant, to households or the community as a whole. These producers may also have some sales of secondary market output whose prices are intended to cover their costs or earn a surplus: for example, sales of reproductions by non-market museums. Though governments and non-profit institutions serving households may have establishments undertaking market production, including own-account capital construction, most of their activity will be undertaken on a non-market basis.
 
Reference: Satellite account on non-profit and volunteering 1997-2007, Catalogue no. 13-015

Source: System of National Accounts 2008, paragraph 6.133

French: Producteur non marchand
Non-market value The value of a good or service that is based on something other than trade between economic agents. Non-market values include, for example, the value of the environment as a source of waste assimilation services. Although no transaction occurs in association with the use of these services by economic agents, there is, in theory, a measurable value associated with them.

See also: Direct-use value, Indirect-use value, Market value, Non-use value
 
Non-monetary gold Refers to all gold not held as reserve assets. Transactions in non-monetary gold (including non-reserve gold held by the monetary authorities and all gold held by financial institutions other than the monetary authorities) are treated as acquisitions less disposals of valuables (if the sole purpose is to provide a store of wealth) and otherwise as final consumption or intermediate consumption, change in inventories, exports or imports. Deposits, loans, and securities denominated in gold are treated as financial assets (not as gold) and are classified along with similar assets denominated in foreign currencies in the appropriate category.

See also: Canada's balance of payments, data quality, concepts and definitions, Catalogue no. 67-001
 
Source: System of National Accounts 2008, paragraph 11.65; Canada's international investment position, Catalogue no. 67-202

French: Or non monétaire
Non-produced assets Non-financial assets that have come into existence in ways other than through processes of production.
 
Component of: Non-financial assets

Composed of: tangible, naturally occurring assets over which ownership rights are enforced, and intangible non-produced assets that are constructs of society. Naturally occurring assets are natural resources (include land, subsoil assets and other naturally occurring assets). Constructs of society consist of Contracts, leases and licenses and Goodwill and marketing assets.

Source: System of National Accounts 2008, paragraphs 10.9, 10.10

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

French: Actifs non produits
Non-produced, non-financial assets See non-produced assets.
 
Non-profit institution Legal or social entities created for the purpose of producing goods and services but whose status does not permit them to be a source of income, profit or other financial gain for the units that establish, control or finance them. Non-profit institutions are allocated to the financial corporations sectors or to the non-financial corporations sectors when they are engaged in market production and to the general government sector if they are engaged in non-market production but subject to general government control. The remaining non-profit institutions are termed non-profit institutions serving households.

See also: Associations of individuals; Classification of Institutional Units by Sectors, Non-profit institutions serving households sector.
 
Component of: Institutional units

Composed of: Market producers, Non-market producers

Source: System of National Accounts 2008, paragraphs 4.8 and 4.166

French: Institutions sans but lucratif
Non-profit institutions serving households Provide goods and services free or at prices that are not economically significant to households. They are often created by associations of persons to provide goods or, more often, services primarily for the benefit of the members themselves. The services are usually financed by regular membership subscriptions or dues. They include professional or learned societies, political parties, trades unions, consumers' associations, churches or religious societies, and social, cultural, recreational or sports clubs. They do not include bodies serving similar functions that are controlled by government units. Religious institutions are included even when mainly financed by government units if this majority financing is not seen as empowering control by government.
 
Component of: Non-profit institution

Reference: Satellite account on non-profit and volunteering 1997-2007, Catalogue no. 13-015

Source: System of National Accounts 2008, paragraph 4.166, 4.167

Notes: The Non-profit institutions serving households is one of the six sectors of the Canadian economy. Introduced with the Canadian System of National Accounts 2012 historical revision.

French: Institutions sans but lucratif au service des ménages
Non-renewable natural resources Natural resources that can be used up completely or to such a degree that it is economically impractical to obtain any more of them (e.g., coal, crude oil, metal ores).
 
Non-resident A person or business that has a centre of economic interest that is outside Canada.

See also: About the balance of payments
 
Non-resident sector All transactors that do not have a centre of economic interest (a dwelling, a business location) in the economic territory of Canada. By definition, non-residents can only engage in financial investment. Any transactor making non-financial investment is deemed to be a resident.

See also: Institutional sectors, International Accounts
 
Non-residential structures Industrial, commercial and institutional buildings, such as plants, warehouses, shopping centres, office buildings, schools and hospitals, plus construction of highways, bridges, railway tracks, canals, waterworks, sewage systems, dams, hydro or thermal generating plants, telephone lines, oil and gas facilities. Includes new construction, conversions resulting in a structural change, major renovations, permanently built-in equipment and site preparation.
 
Component of: Fixed asset

Source: Guide to the Income and Expenditure Accounts, Catalogue no. 13-017

French: Ouvrages non résidentiels
Non-residential structures and equipment The sum of non-residential structures and in machinery and equipment.
 
Non-residential waste Municipal solid non-hazardous waste generated by industrial, commercial and institutional sources as well as waste generated by construction and demolition activities.
 
Source: Waste management industry survey, Catalogue no. 16F0023

French: Déchets non résidentiels
Non-sampling errors Statistical errors which may occur in a survey operation, such as non-response, coverage and classification errors, differences in the interpretation of questions, incorrect information from respondents, mistakes in recording, coding and processing of data.
 
Non-use value The value placed on (or the benefits obtained from knowing about) the existence of natural resources.

See also: Direct-use value, Market value, Non-market value
 
North American Industry Classification System An industrial classification system used to group producers into industries on the basis of similarities in their production processes. Developed jointly in 1997 by Canada, Mexico and the United States, it provides a common framework of classification which places industrial statistics compiled by the three countries on a comparable basis.
 
Notes See bonds, debentures.
 
French: Billets
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