Glossary – I

Canadian System of National Accounts glossary – I
Term Definition
Illegal production The production of goods and services whose sale, distribution or possession is forbidden by law, and production activities which are usually legal but become illegal when carried out by unauthorized producers.
 
See also: Production boundary

Source: Gross Domestic Product by Industry, Sources and Methods, Catalogueno.15-547

French: Production illégale
Immigrant A landed immigrant or a non-permanent resident. A landed immigrant is a permanent resident who was not a Canadian citizen at birth. A non-permanent resident is a person who holds a study or work permit or who is a refugee claimant or is a family member living with this refugee claimant.
 
Implicit price indexes Price indexes that are a by-product of the deflation procedure and are obtained by dividing the value series (measured at current prices) by the volume series (measured at constant prices).
 
Import duties Canadian customs duties or other import charges payable on particular goods when they enter the territory of Canada. Duties are specified in customs tariff schedules. The value of imports in producers' prices shown in the final demand table by commodity includes import duties. Imports are shown in the final demand table classified by commodity only. Since they constitute additions to domestic supply of goods and services, they appear with a negative sign in the final demand table. Imports do not include travel expenditure of foreigners or residents of other provinces. Unlike taxes on products, these taxes do not appear as margins in the Input-Output Accounts but are shown as direct payment from businesses and final demand categories to governments.
 
Imports (interprovincial and international) Payments for goods and services originating from abroad or from other provinces or territories. The payments may also take the form of barter, gifts or grants. Imports are valued in producers' prices (cost, insurance and freight included) including customs duties at the border of the exporting country or province or territory.
 
Reference: Canada's balance of payments, data quality, concepts and definitions, Catalogue no.67-001

Source: Canada's System of national economic accounts: an overview. The Input-Output Accounts

French: Importations (interprovinciales et internationales)
Imports of commodities See exports and imports of goods and services.
 
Imports of goods and services See See exports and imports of goods and services.
 
Reference: Canada's balance of payments, data quality, concepts and definitions, Catalogue no. 67-00, Guide to the Income and Expenditure Accounts, Catalogue no. 13-017

French: Importations de biens et services
Income From a theoretical point of view, income is often defined as the maximum amount that a household, or other unit, can consume without reducing its real net worth. However, the real net worth of a unit may be changed as a result of the receipt or payment of capital transfers and as a result of real holding gains or losses that accrue on its assets or liabilities. It may also be changed by events such as natural disasters that change the volume of assets. Capital transfers, real holding gains or losses and other changes in the volume of assets due to the effect of events such as natural disasters are specifically excluded from disposable income as measured here. (Capital transfers are recorded in the capital account of the System of National Accounts, while other changes in the volume of assets and real holding gains or losses are recorded in the other changes in assets accounts). Disposable income can be interpreted in a narrow sense as the maximum amount that a household or other unit can afford to spend on consumption goods or services during the accounting period without having to finance its expenditures by reducing its cash, by disposing of other financial assets or non-financial assets or by increasing its liabilities. This concept is equivalent to the economic theoretical concept only when the net worth at the beginning of the period is not changed by capital transfers, other changes in the volume of assets or real holding gains or losses recorded during the period.
 
Source: System of National Accounts 2008, paragraph 8.25.

French: Revenu
Income and Expenditure Accounts These accounts show, for each major sector, all sources of current income (production, receipts of property income and other transfers) and all current outlays (expenditure on goods and services, payments of property income and other transfers), as well as net saving, equal to a sector's income less its outlay.
 
See also: Institutional sectors, Account, Sequence of Accounts. Canada's System of national economic accounts: An overview

Composed of: The aggregate income-based gross domestic product and expenditures-based gross domestic product tables, as well as the sector accounts, Income and Outlay Accounts and Capital Account.

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

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

French: Comptes des revenus et dépenses
Income and outlay account See income and Expenditure Accounts.

See also: Institutional sectors, Account, Sequence of Accounts, Canada's System of national economic accounts: An overview
 
Notes: Discontinued with the Canadian System of National Accounts 2012 historical revision.

French: Comptes des revenus et dépenses
Income trust An investment trust that holds assets which are income producing. The income is passed on to the unit holders. Some of the most popular income trusts are Real Estate Investment Trusts and Natural Resource Trusts. The main attraction of income trusts is their ability to generate constant cash flows for investors.
 
See also: Trust fund

Reference: About the government finance statistical program

Source: Financial Management System (FMS), Catalogue no.68F0023

French: Fiducie de revenu
Income trust units Unit holders in an income trust receive regular cash distributions from an entity created to pay out the cash flow generated by a business. Income trust units are treated as equities in Canada's Balance of Payments.
 
Index number The variation of, for example, prices or wages as compared with a chosen base period. The base period is often represented by 100. The index acts as a statistical yardstick which is expressed in terms of percentages. Thus, an index number of 146 would indicate that the current period is 46% higher than in the base period.
 
Indirect foreign imports The predicted value of goods and services that would be imported from abroad as a consequence of changes in the level of productive activity following a change in exogenous spending (a spending shock).
 
Indirect taxes on production See taxes on products.
 
Component of: Taxes

Notes: Discontinued with the Canadian System of National Accounts 2012 historical revision. Synonym of taxes on production.

French: Impôts indirects sur les production
Indirect taxes on products See taxes on products.
 
Component of: Taxes

Notes: Discontinued with the Canadian System of National Accounts 2012 historical revision. Synonym of taxes on products.

French: Impôts indirects sur les produits
Indirect-use value The value associated with the functions (or services) provided by the environment. These include, among others, carbon fixation, the provision of oxygen, ultra-violet radiation absorption and waste assimilation.
 
See also: Direct-use value, Market value, Non-market value, Non-use value
Source: Concepts, Sources and Methods of the Canadian System of Environmental and Resources Accounts, Catalogue no. 16-505

French: Valeur d'utilisation indirecte
Industrial classification Definitions that are used to determine which establishments are similar enough to constitute an industry.

See also: North American Industrial Classification
 
Industrial, commercial and institutional waste Waste generated by all non-residential sources in a municipality, and is excluded from the residential waste stream. This includes: industrial waste, which is generated by manufacturing, primary and secondary industries, and is managed off-site from the manufacturing operation, and is generally picked up under contract by the Private sector; commercial waste is generated by commercial operations such as shopping centres, restaurants and offices. Some commercial waste (from small street-front stores, etc.) may be picked up by the municipal collection system along with residential waste; institutional waste is generated by institutional facilities such as schools, hospitals, government facilities, seniors' homes and universities. This waste is generally picked up under contract with the Private sector.
 
Industrial price indexes Index numbers which describe the price movements of the various groups of goods and services produced by a given industry.

See also: Price index; Gross Domestic Product by Industry, Sources and Methods, Catalogue no. 15-547
 
Industrial production The value added or output of a group of industries comprising mining, manufacturing, electric power generation, gas distribution and other utilities.

See also: Price index; Gross Domestic Product by Industry, Sources and Methods, Catalogue no. 15-547
Industry All establishments that have the same principal economic activity.

See also: Sequence of accounts, Institutional sectors
 
Component of: Economic sector

Composed of: Establishments

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

French: Industrie
Input An economic resource used in a firm's production process. A distinction is usually drawn between two primary inputs (labour and capital) and intermediate inputs (energy and raw materials).

Source: About the productivity accounts

Notes: Synonym of factor of production.

French: Entrée
Input-Output Accounts Made up of several parts: the input-output tables (consisting of input, output and final demand tables) for the national economy as well as provinces and territories, the interprovincial trade flow tables, the impact tables, and a number of supplementary tables for margins such as retail trade margins, wholesale trade margins, transport and tax margins. While the three main data tables (also known as matrices) completely describe the production account of a jurisdiction, the accounts of the provinces and territories are linked together through an interprovincial flows table that shows each jurisdiction's exports to, and imports from, other provinces and territories as well as abroad.

See also: Account, Sequence of accounts; Canada's System of national economic accounts: An overview
 
Input-Output Models The Canadian input-output model is particularly interesting for structural impact analysis. It provides a detailed breakdown of Canadian economic activity among business industries and a detailed breakdown of their inputs and outputs by commodity associated with some arbitrarily fixed exogenous demand. It also provides supply requirements from other sources such as imports and government production of goods and services. The input-output model is a structural model dealing primarily with resource allocation in the economy corresponding to an exogenously given demand.

Component of: the set of all institutional sectors make up the total ecomomy

Composed of: Household sector, Non-profit institutions serving households sector, Corporations sector, General government sector, Non-resident sector
 
Input-output tables Part of the production accounts of the Canadian System of National Economic Accounts. They show the production of goods and services, the generation of income from the production process and the flows of goods and services through the economic system between producers and consumers. The transactors involved in the production process are individuals (persons or households), establishments (production units of businesses and governments), non-business entities such as non-profit institutions, and governments.

See also: Account, Sequence of Accounts. See also Canada's System of national economic accounts: An overview
 
Institutional investors Organizations that typically buy and sell securities in very large quantities. Institutional investors face less protective regulations because it is assumed that they are more knowledgeable and better able to protect themselves. Major Canadian institutional investors are pension funds, mutual, segregated and pooled funds as well as the general funds of insurance companies.
 
Institutional sectors Institutional units are grouped together to form institutional sectors, on the basis of their principal functions, behaviour and objectives.

See also: Classification of Institutional Units by Sectors
 
Component of: Total economy

Composed of: Household sector, Non-profit institutions serving households sector, General government sector, Financial corporations sector, Non-financial corporations sector, Non-residents sector

Reference: Canada's System of national economic accounts: An overview

Source: System of National Account 2008, paragraph 2.17

Notes: Prior to the Canadian System of National Accounts 2012 historical revision, institutional units were grouped as per the following sectors: persons and unincorporated businesses, corporate sector, non-resident sector.

French: Secteurs institutionnels
Institutional unit An economic entity that is capable, in its own right, of owning assets, incurring liabilities, and engaging in economic activities and in transactions with other entities. There is a hierarchical relationship between institutional units and establishments. An institutional unit contains one or more entire establishment(s); an establishment belongs to one and only one institutional unit. There are two main types of units in the real world that may qualify as institutional units, namely persons or groups of persons in the form of households, and legal or social entities.

See also: Enterprise, Institutional sectors; Classification of Institutional Units by Sectors
 
Component of: Industry, Sector

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

Source: System of National Accounts 2008, paragraphs 4.2, 4.3, 41

French: Unité institutionnelle
Instream water use Instream water uses do not remove water from its source.
 
Insurance corporations Incorporated, mutual and other entities whose principal function is to provide life, accident, sickness, fire or other forms of insurance to individual institutional units or reinsurance services to other insurance corporations. Includes captive insurance (an insurance company that serves only its owner) and deposit insurers (issuers of deposit guarantees and other issuers of standardized guarantees that are separate entities and act like insurers by charging premiums and have reserves).

See also: Social insurance benefits, Social insurance contribution, Classification of Institutional Units by Sectors
 
Component of: Finance, insurance and real estate industry

Composed of: Mutual and Non-mutual insurance corporations, Life insurance and non-life insurance (for example, property and casualty insurance)

Source: System of National Accounts 2008, paragraph 6.188

French: Sociétés d'assurance
Insurance technical reserve Insurance corporations have at their disposal, reserves consisting of unearned premiums and claims outstanding. These reserves are called technical reserves and are used by insurance companies to generate investment income. Because the technical reserves are a liability of an insurance corporation to its policyholders, the investment income they generate is treated as being attributed to the policyholders. However, the amounts remain with the insurance corporation and are in effect a hidden supplement to the apparent premium. This income is therefore treated as a premium supplement paid by the policyholder to the insurance corporation.

See also: Debt
 
Component of: Debt instruments

Source: System of National Accounts 2008, paragraph 6.188

French: Réserves techniques détenues par les entreprises d'assurance
Intangible asset An asset other than a tangible asset. Examples include software, research and development, and goodwill.
 
Component of: Non-produced assets

Source: System of National Accounts 2008, paragraph 10.67, A350

French: Actif incorporel
Intellectual property products Products that are the result of research, development, investigation or innovation leading to knowledge that the developers can market or use to their own benefit in production because use of the knowledge is restricted by means of legal or other protection. The knowledge may be embodied in a free-standing product or may be embodied in another. When the latter is the case, the product embodying the knowledge has an increased price relative to a similar product without this embodied knowledge. The knowledge remains an asset as long as its use can create some form of monopoly profit for its owner. When it is no longer protected or becomes outdated by later developments, it ceases to be an asset.

See also: Capital account, Balance Sheet
 
Component of: Fixed asset

Composed of: Computer software, Databases, Research and development, Mineral exploration and evaluation

Source: System of National Accounts 2008, paragraph 10.98

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

French: Produits de propriété intellectuelle
Interest A form of property income that is receivable by the owners of certain kinds of financial assets, namely: deposits, debt securities, loans and other accounts receivable for putting the financial asset at the disposal of another institutional unit. Income on special drawing rights holdings and allocations is also treated as interest. The financial assets giving rise to interest are all claims of creditors over debtors. Creditors lend funds to debtors that lead to the creation of one or other of the financial instruments listed above. The amount the debtor owes the creditor is known as the principal. Over time, the amount due to the creditor declines as the debt is repaid and increases as interest accrues. The balance at any time is referred to as the principal outstanding.

See also: Loans, Property income, Dividends
 
Component of: Investment income

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

Source: System of National Accounts 2008, paragraph 7.133

French: Intérêts
Interest and miscellaneous investment income Investment income of persons, except dividends, plus government investment income, less net investment income of persons and governments received from non-residents, less the transfer portion of interest on the consumer debt, less the interest on the public debt.
 
Interest on the consumer debt Interest paid by persons on account of liabilities incurred to finance personal expenditure on consumer goods and services. Consists of two parts: the administrative expenses, representing the cost of rendering services to borrowers, and the remaining transfer portion.
 
Interest on the public debt Interest payments on liabilities of the government.

See also: General government sector
 
Intermediate consumption Consists of the value of the goods and services consumed as inputs by a process of production, excluding fixed assets whose consumption is recorded as consumption of fixed capital. The goods or services may be either transformed or used up by the production process. Some inputs re-emerge after having been transformed and incorporated into the outputs, for example, grain may be transformed into flour which in turn may be transformed into bread. Other inputs are completely consumed or used up, for example, electricity and most services.

See also: Production
 
Component of: Output

Composed of: Commodities

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

Source: System of National Accounts 2008, paragraph 6.213

French: Consommation intermédiaire
International Accounts A summary of the economic relationships between residents of that economy and non-residents. They comprise: a) the Balance of Payments, which summarizes transactions between residents and non-residents during a specific time period; b) the international investment position, which shows, at a point in time, the value of: financial assets of residents of an economy that are claims on non-residents or are gold bullion held as reserve assets; and the liabilities of residents of an economy to non-residents; and c) the Other Changes in Assets Account, a statement that shows other flows, such as valuation changes, which reconcile the Balance of Payments and the International Investment Position for a specific period by showing changes due to economic events other than transactions between residents and non-residents.

See also: Canada's System of national economic accounts: An overview
 
Component of: Sequence of Accounts

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 26.12

French: Comptes internationaux
International Investment Position A balance sheet account for all financial assets and liabilities where one party to the arrangement is non-resident.

See also: Sequence of accounts; Canada's balance of payments, data quality, concepts and definitions, Catalogue no.67-001; Canada's international investment position, Catalogue no.67-202
 
Component of: International Accounts

Reference: Canada's Balance of Payments and International Investment Position, Concepts, Methods, Sources and Products, Catalogue no.67-506

Source: System of National Accounts 2008, paragraph 26.11

Source: System of National Accounts 2008, paragraph 26.12

French: Bilan des investissements internationaux
International traveller Applies to all persons arriving in Canada who cleared through Customs points of entry, whether travelling for business, pleasure or other reasons.
 
Composed of: Non-resident traveller, Resident traveller, Other traveller

Source: Human Resource Module of the Tourism Satellite Account, 2009, Catalogue no. 13-604, no. 66

French: Voyageur international
Interpolation Estimating values between known observations.
 
Composed of: Non-resident traveller, Resident traveller, Other traveller

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

French: Interpolation
Interprovincial trade flows A trade flow is constituted by the sale of commodities from a province or territory or abroad to another province or territory or abroad. Exports can originate from a province or territory if the goods or services are produced in that province or territory or withdrawn from inventories of establishment in that province or territory. The province or territory of export or import refers to the ultimate province or territory of origin and destination rather than the port of lading or the provinces/territories where goods are trans-shipped. An export also occurs when goods and services are purchased within a province or territory by non-residents while staying there (e.g., hotel accommodation, meals or entertainment). Similarly, imports are defined for a province or territory if the goods or services are destined for the province or territory's current expenditure, for capital formation, used as intermediate inputs by establishment in that province or territory or make up additions to inventories. Goods that are shipped into a province or territory but destined for another do not constitute imports.
 
Inventories Produced assets that consist of goods and services, which came into existence in the current period or in an earlier period, and that are held for sale, for use in production or other use at a later date. Inventories consist of stocks of outputs that are still held by the units that produced them prior to their being further processed, sold, delivered to other units or used in other ways, and stocks of products acquired from other units that are intended to be used for intermediate consumption or for resale without further processing. Inventories of services consist of work-in-progress or finished products, for example, architectural drawings, which are in the process of completion or are completed and waiting for the building to which they relate to be started. Inventories held by government include, but are not limited to, inventories of strategic materials, and grain and other commodities of special importance to the nation.
 
See also: Production

Component of: Produced assets, Assets

Composed of: Inventories of finished products, Inventories of goods in process, Inventories of raw materials

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 10.12

French: Stocks
Inventories of finished products Outputs that are considered by their producers to be in a state in which they are normally supplied to others, even though such goods may subsequently be used as intermediate inputs into processes of production by others. Estimates of finished goods inventories include those in transit in Canada and on consignment in Canada. Excluded are inventories for which Form B13, "Customs Canada, Export Entry", have been completed, as well as imports in bonded customs warehouses.

See also: Inventories of goods in process; Inventories of raw materials
 
Inventories of goods in process Goods that are partially processed by the producer, that is output which has not reached the state in which it is normally sold to consumers.

See also: Inventories of finished products, Inventories of raw materials
 
Inventories of raw materials Include fuel, materials, supplies and components held by a producer which were acquired from other producers for the purpose of intermediate consumption and have not yet been charged out to processing. Raw materials include only goods that are entirely used up when they are fed into the production process. Goods that are used repeatedly or continuously in production over a long period of time are classified as fixed capital formation. Excluded are materials and supplies owned and held abroad (i.e., purchases that have not cleared customs) and goods that are intended for resale in the same condition as purchased.

See also: Inventories of goods in process; Inventories of finished goods
 
Inventory valuation adjustment In periods of changing prices, gains and losses in inventory accounts may reflect changes in both quantities held and prices. Holding gains and losses on inventories are present in corporation profits before taxes and other income aggregates, and must be removed in order to measure current production. To remove the impact of price changes, the opening and closing stocks are revalued. The change in stocks so valued is called the value of physical change in inventories. The difference between the value of physical change and the change in book value is called inventory valuation adjustment.

Reference: Gross Domestic Product by Industry, Sources and Methods, Catalogueno.15-547
 
Component of: Financial assets

Source: Guide to the Income and Expenditure Accounts, Catalogueno.13-017

French: Ajustement de la valeur des stocks
Investment fund Commonly known as mutual funds in Canada, these are collective investment undertakings through which investors pool funds for investment in financial assets. Those units acquiring shares in the funds thus spread their risk across all the instruments in the fund. Investment funds include mutual funds and unit trusts. Investment funds issue shares when a corporate structure is used and units when a trust structure is used. Investment fund shares refer to the shares issued by mutual funds, rather than the shares the mutual fund may hold. Investment funds are divided into money market funds and non-money market investment funds. The fundamental difference between them is that money market funds typically invest in money market instruments with a residual maturity of less than one year, are often transferable and are often regarded as close substitutes for deposits. Non-money market investment funds typically invest in longer-term financial assets. They are not transferable and are typically not regarded as substitutes for deposits.

See also: Financial account
 
Component of: Financial assets

Source: System of National Accounts 2008, paragraph 11.94, 11.96, 11.97

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

French: Fonds d'investissement
Investment fund shares Share of an Investment fund
 
Investment income Income receivable by the owner of a financial asset in return for providing funds to another institutional unit. The terms governing the payment of investment income are usually specified in the financial instrument created when the funds are transferred from the creditor to the debtor. Such arrangements are typically made only for a limited period of time, after which the funds must be returned.
 
Component of: Property income

Composed of: Interest, Dividends

Source: System of National Accounts 2008, paragraph 7.108

French: Revenus de placements
Investment in fixed capital Synonym of gross fixed capital formation.
Issue price The proceeds received by the issuer when issuing a security.
 
Issuing sector The issuing sector of a financial instrument refers to the classification of the issuer of a security. In Canada's balance of payments and international investment position, Canadian issuers are classified to one of the following: Government of Canada direct, federal enterprises, provincial direct, provincial enterprises, municipal direct, municipal enterprises or corporations. Foreign issuers are classified to governments, international organizations or other.
 
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