Glossary – R

Canadian System of National Accounts glossary index – R

Canadian System of National Accounts glossary – R
Term Definition
Real In the national accounts, estimates of the volume of goods, services, production and output are often referred to as “real”. These estimates generally take the form of a volume index or an estimate in dollars.

See also: Deflation, Price index, Price deflation, Paasche volume index, Laspeyres volume index, Fisher volume index
 
Source: Guide to the Income and Expenditure Accounts, Catalogue no. 13-017

French: Réel
Real estate A derived value which includes structures plus land.
 
French: Immobilier
Real gross domestic product Gross domestic product at constant prices.
 
Rebasing The process of updating the base period of an index.

See also: Changing the base period
 
Reference period In connection with price indexes or volume indexes, the reference period means the period to which the indexes relate; it is typically set equal to 100. It does not necessarily coincide with the “base” period that provides the weights for the indexes.
 
Refundable (payable or non-wastable) income tax credit An amount deductible from the amount of income tax owning, with the amount exceeding the tax liability payable to the individual or corporation.
 
Registered retirement saving plan A savings arrangement available from most major financial institutions that accumulates contributions and investment earnings on a tax-sheltered basis.
 
Reinsurance Insurance where both parties to the policy are providers of insurance services. That is, reinsurance allows insurance risk to be transferred from one insurer to another.
 
Component of: Insurance services

French: Réassurance
Reinvested earnings Because of the relationship of control or influence, the direct investor's share of retained earnings of a subsidiary or associate is imputed as first being paid out as an income flow in the balance of payments current account and then reinvested as part of foreign direct investment as a financial transaction in the balance of payments financial account. The income item is called reinvested earnings; the corresponding equal entry in the financial account is called reinvestment of earnings. Reinvested earnings are defined as the direct investor's share in the retained earnings of the direct investment enterprise.
 
Reference: Canada's balance of payments, data quality, concepts and definitions, Catalogue no. 67-001

Source: System of National Accounts 2008, paragraph 26.88

French: Bénéfices réinvestis
Rent The income receivable by the owner of a natural resource and land (the lessor or landlord) for putting the natural resource and land at the disposal of another institutional unit (a lessee or tenant) for use of the resource in production.

See also: Resource lease, Rental, Royalties
 
Source: System of National Accounts 2008, paragraph 7.109

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

French: Rente
Rental The amount payable by the user of a fixed asset to its owner, under an operating lease or similar contract, for the right to use that asset in production for a specified period of time.

See also: Resource rent, Royalties
 
Source: System of National Accounts 2008, paragraph 6.245

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

French: Loyer/Location
Replacement cost value of volunteer work Hours volunteered valued at replacement cost, that is, the cost of purchasing the same services on the paid labour market.
 
Repurchase agreements A securities repurchase agreement (repos) is an arrangement involving the provision of securities in exchange for cash with a commitment to repurchase the same or similar securities at a fixed price either on a specified future date (often one or a few days hence, but also further in the future) or with an “open” maturity. Securities lending with cash collateral and sale or buy-backs are economically the same as a repurchase agreement; all involve the provision of securities as collateral for a loan or deposit.
 
Reference: Canada's balance of payments, data quality, concepts and definitions, Catalogue no. 67-001; Canada's international investment position, Catalogue no. 67-202

Source: System of National Accounts 2008, paragraph 11.74

French: Prises en pension
Research and development Consists of the value of expenditures on creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and use of this stock of knowledge to devise new applications. This does not extend to including human capital as assets within the System of National Accounts. Research and development is treated as capital formation except in any cases where it is clear that the activity does not entail any economic benefit for its owner in which case it is treated as intermediate consumption.

See also: Balance sheet account, Gross fixed capital formation
 
Component of: Intellectual property products

Reference: The Canadian Research and Development Satellite Account, 1997 to 2004, Catalogue no. 13-604, no. 56

Source: System of National Accounts 2008, paragraphs 10.103, 6.230

French: Recherche et développement
Research and development capital expenditures Research and development is treated as capital formation in cases where it is clear that the activity entails any economic benefit for its owner.

See also: Natonal Balance Sheet Accounts, Gross fixed capital formation
 
Component of: Intellectual property products

Reference: The Canadian Research and Development Satellite Account, 1997 to 2004, Catalogue no. 13-604, no. 56

Source: System of National Accounts 2008, paragraph 6.230

French: Dépenses en capital de recherche et développement
Research and development current expenditures Research and development is treated as intermediate consumption in any cases where it is clear that the activity does not entail any economic benefit for its owner.

See also: National Balance Sheet Accounts, Gross fixed capital formation
 
Reference: The Canadian Research and Development Satellite Account, 1997 to 2004, Catalogue no. 13-604, no. 56

Source: System of National Accounts 2008, paragraph 6.230

French: Dépenses courantes en recherche et développement
Reserve asset Reserve assets are those external assets that are readily available to and controlled by monetary authorities for meeting balance of payments financing needs, for intervention in exchange markets to affect the currency exchange rate and for other related purposes (such as maintaining confidence in the currency and the economy, and serving as a basis for foreign borrowing). Reserve assets must be denominated and settled in foreign currency. Underlying the concept of reserve assets are the notions of “control” and “availability for use” by the monetary authorities.
 
Reference: Canada's balance of payments, data quality, concepts and definitions, Catalogue no. 67-001; Canada's international investment position, Catalogue no. 67-202

Source: System of National Accounts 2008, paragraph 26.95

French: Avoir de réserve
Reserve fund A pool of money set aside by government authorization to meet the needs of a future event.
 
Reserve position in the fund Reserve asset item that refers to the sum of the reserve tranche purchases that a member may draw upon and any indebtedness of the International Monetary Fund (IMF) that is readily repayable to the member.
 
Reserves Deposits of subsoil assets that can be assumed with a high degree of certainty to be profitable under current technological and economic conditions. The criteria used to define a reserve differs from one subsoil asset to another.

See also: Economically recoverable reserves
 
Residence Each institutional unit is a resident of one and only one economic territory, determined by its center of predominant economic interest. An institutional unit is resident in an economic territory when there exists, within the economic territory, some location, dwelling, place of production, or other premises on which or from which the unit engages and intends to continue engaging, either indefinitely or over a finite but long period of time, in economic activities and transactions on a significant scale.
 
Component of: Balance of Payments Account

Reference: Canada's international investment position, Catalogue no. 67-202; Gross Domestic Product by Industry, Sources and Methods, Catalogue no. 15-547

Source: Balance of Payments and International Investment Position Manual, 6th edition paragraph 4.113, 4.114

French: Résidence
Residential structures Construction of dwellings (includes single, semi-detached, row housing and apartments), garages, cottages and mobile homes. Includes new construction, conversions resulting in a structural change and major renovations (together referred to as “alterations and improvements”), permanently built-in equipment, site preparation and transfer costs such as real estate commissions.

See also: Dwellings
 
Component of: Fixed asset

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

French: Bâtiments résidentiels
Residential waste Solid waste from residential sources (households), including waste that is picked up by the municipality (either using its own staff or through contracting firms), or residential waste that is taken by the generator to depots, transfer stations and disposal facilities.
 
Resource lease Agreement whereby the legal owner of a natural resource that the System of National Accounts treats as having an infinite life, makes it available to a lessee in return for a regular payment, recorded as property income and described as rent.
 
Component of: Contracts, leases and licenses

Source: System of National Accounts 2008, paragraph 7.109

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

French: Location de ressource
Resource rent Resource rent is measured as the difference between total revenue generated from extraction of a natural resource asset and all costs incurred during the extraction process, including the cost of produced capital, but excluding taxes, royalties and other costs that are not directly due to the extraction process. Resource rent serves as the basis for estimating the market value of natural resource asset stocks in the Natural Resource Stock Accounts.

See also: Natural resources
 
Component of: Property income, Primary income

Source: SEEA

Notes: Beginning with the 2014 historically-revised Canadian System of National Accounts data, the concept of resource rent will be that of the System of National Accounts 2008, paragraphs 7.109, 7.110, 7.160.

French: Rente des ressources
Retained earnings Retained earnings of a corporation or quasi-corporation are equal to the distributable income less the dividends payable or withdrawal of income from the corporation or quasi-corporation respectively. If the foreign direct investment enterprise is wholly owned by a single foreign direct investor (for example, a branch of a foreign enterprise), the whole of the retained earnings is deemed to be remitted to that investor and then reinvested, in which case the saving of the enterprise must be zero. When a foreign direct investor owns only part of the equity of the direct investment enterprise, the amount that is deemed to be remitted to, and reinvested by, the foreign investor is proportional to the share of the equity owned. Retained earnings are equal to the net operating surplus of the enterprise plus all property income earned less all property income payable (before calculating reinvested earnings) plus current transfers receivable less current transfers payable and less the item for the adjustment for the change in pension entitlements. Reinvested earnings accrued from any immediate subsidiaries are included in the property income receivable by the direct investment enterprise.
 
Source: System of National Accounts 2008, paragraphs 7.139 and 26.63

French: Bénéfices non distribués
Retirements Transactions in securities that represent the amount of capital reimbursed by the issuer at the date of maturity of the securities.
 
Return to produced capital The portion of the revenue earned from an activity that is due the owner of the produced capital employed in the activity. Return to produced capital is interpreted in the Canadian System of Environmental and Resource Accounts as the cost of financing the acquisition of the produced capital stock used in resource extraction activities. Financing costs are estimated using a nominal long-term industrial bond rate.

See also: Cost of produced capital
 
Revenue A transaction that results in an increase in net worth.
 
Revenue fund Also referred to as a current, operating, or general fund. It is the fund into which the main sources of financing available to government units are recorded. Examples of the types of income comprising this fund are taxation revenue, grants, interest earned on investments, service charges, and licenses and permits. As well, the revenue fund initially records those sources of financing that are eventually transferred to the capital fund and the reserve funds. The revenue fund also records the everyday operating expenditures.
 
Royalties Either the regular payments made by the lessees of subsoil assets to the owners of the assets or the payments made by units using processes or producing products covered by patents.

See also: Resource rent, Rental
 
Royalties on intellectual property products Payments for the use of intellectual property products such as patents and copyrights.
 
Component of: Royalties

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

French: Redevances au titre des produits de propriété intellectuelle
Royalties on natural resources Payments for the use of natural resources and land.
 
Component of: Royalties

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

French: Redevances au titre des ressources naturelles
Run-off The portion of precipitation, and melt from snowpack and glaciers, that, by a variety of paths above and below the surface of the ground, reaches the stream channel. Once it enters a stream channel run-off becomes streamflow.
 
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