Information on Canadian Government Finance Statistics Provisional Estimates

November 19, 2014

OTTAWA – Statistics Canada’s makes regular updates to the Canadian System of Macroeconomic Accounts in order to incorporate the most current information on the economy from censuses and annual surveys, and to improve estimation methods. These type of revisions are typically limited to a number of reference years.

Periodically, the Canadian macroeconomic accounts or components of the macroeconomic accounts undergo major revisions, which are much broader in scope. These are reserved for incorporating conceptual, classification, presentational, major statistical changes or due to the introduction of a new international accounting standard.

Since 2009 Statistics Canada has been working towards implementing the Government Finance Statistics standard, an international standard for reporting government revenues, expenditures, financial transactions, revaluations, assets, liabilities and net worth.

In short, Government finance statistics are:

• an economic representation of a government’s financial activity;
• the International Monetary Fund’s preferred basis for reporting government financial statistics;
• conceptually consistent with the balance of payment, international investment position and national account set of statistics.

Statistics Canada is now ready to release a set of provisional estimates of Government Finance Statistics for the period 2008-2009 to 2012-2013.

Government Finance Statistics allow users to analyze the financial soundness of the government and government business enterprises in the same way that financial soundness and stability is measured in the corporate or household sector. Government Finance Statistics also enable users to determine whether government decisions are sustainable over the long term, and assess government liquidity constraints as well as financing needs.

What are Government Finance Statistics?

The Canadian Government Finance Statistics will:

• Improve international comparability. Most countries around the world publish a set of government statistics according to the IMF’s government finance statistics manual. The Canadian Government Finance Statistics will be compatible allowing for inter-country comparisons with respect to indicators such as government sources of revenue, expenditures and level of debt.
• Allow policy makers to study the financial position, liquidity and operations of the different levels of governments in a consistent and systematic manner;
• Incorporate the latest advances in methodology in the area of economic measurement, and;
• Integrate updated source data and statistical techniques to add detail to economic estimates to more fully reflect the role of government in the Canadian economy.

Why Provisional?

Given the degree of changes associated with the development of this new product, Statistics Canada has decided to release the data with the provisional qualifier.

The provisional qualifier signals to users that the data are fit for use but subject to revision. Over the next year these data will be integrated into the rest of the Canadian System of Macroeconomic Accounts (such as the National Accounts, Balance of Payments, International Investment Position, Input-Output Tables). The data will be revised due to this integration process as the estimates, concepts and methods are compared and adjusted to align with counterparty information and integrated into the wider national accounts framework.

In addition there are a number of tasks that need to be completed over the next year to improve the usability of the data. These include:

• Balancing grants across levels of government: The GFS data estimate grants paid by one government to another government. Since the data are built from individual government accounting records the recording of what one level of government pays to another is not always consistent with what the receiving level of government records. For example, the Federal government may record a grant to a province valued at $100m. The provincial government may only record receipt of $95m (due to timing or approaches to classification). It is the role of the GFS compiler to determine how to balance these flows. This balancing has not been incorporated into the GFS data at this time.
• Inclusion of capital expenditures and capital stock: The current version of GFS data will not include estimates of capital spending and capital stock by government. The GFS manual recommends that government capital stock estimates be valued on a replacement cost basis. This means that the value of the government’s non-financial assets need to be valued at current prices. Government accounting records are inconsistent in their valuation of non-financial assets. As such, a methodology referred to as a perpetual inventory method, needs to be adopted to properly value the government’s non-financial assets. These estimates are not yet ready for dissemination. They will be ready sometime within the next year. The implication is that the provisional CGFS estimates will not include estimates of capital investment and capital stock and therefore it will not be possible to derive government net operating balance, net lending/borrowing or net worth.
• Consolidation: Consolidation is a method of presenting statistics for a set of institutional units (or entities) as if they constituted a single unit. For example, consider the following sectors within the Canadian public sector universe: Federal general government, provincial and territorial general government and local general government. Assume that we would like to analyze the overall impact of the federal, provincial/territorial and local governments on the Canadian economy. One way to do this would be to view these sectors as a single general government sector. In order to do this we could consolidate these units together and treat them as if they are a single unit. Consolidation is not simply summing together the data into a single aggregate. Consolidation involves first eliminating the transactions and debtor-creditor relationships that occur among the units being consolidated and then aggregating the remaining transactions. In other words, transactions or stock position of one unit are paired with the same transaction or stock position recorded for the second unit and then both the transaction or stock position are eliminated. The provisional GFS data will not be presented on an inter-sectoral basis. This has a number of implications. First, it makes it difficult to compare data from one province to another. For example, suppose you wanted to analyze total expenditures on health in the province of Ontario. You could not add together the health expenditures of the provincial general government, health sector and local government because you would invariably double count the expenditures. Some of the expenditures of the provincial general government on health represent grants to the health sector. The health sector then spends those same funds on hospital care, emergency care etc. Adding the two figures together results in a double counting of the information. Until the data are consolidated the only analysis that can be done using the CGFS data is a time series comparison of the data for a particular level of government.
• Aboriginal General Governments: While Statistics Canada has been producing data for the aboriginal general government sector since 2012 as part of the release of the Canadian System of National Accounts these data have not yet been incorporated into the CGFS release. These data will be incorporated over the next year as the CGFS data are integrated into the rest of the Canadian Macroeconomic Accounts.

Given these limitations one could ask why the data are being released at this point in time. Statistics Canada felt it was better to release the data now rather than wait another year since there is currently a lack of data in the area of government finance statistics, especially at the provincial and local level. While some of the detailed series may change over the next year and there are some data gaps, the general story and trends found in the data will remain the same.

‘Sequence of accounts’ approach

The strength of the Government Finance Statistics framework lies in the fact that it is a set of interrelated statements that integrate flows (revenues and expenditures) and stock positions (debt) for different levels of governments and government business enterprises.

The CGFS data is presented as a “sequence of accounts.” That is, it consists of two inter-related accounts; a statement of operations and a balance sheet.

This framework allows data users to monitor the impact current government policy and spending has on its stock of assets and liabilities, examine the liquidity of governments and the sustainability of government fiscal policy.

The Canadian Government Finance Statistics are also closely linked to other macroeconomic frameworks such as the System of National Accounts, Balance of Payments and International Investment Position. This ensures the data are comparable to other macroeconomic indicators such as gross domestic product, the balance of payments, household debt and net worth positions.

Increased Detail

With the initial release of the CGFS nine new matrixes will be published from which over 100 new data tables can be constructed.

Users will be able to look at government revenues (by type of revenue) and expenditures (by type of expenditure), transactions in assets, liabilities, as well as the stock of assets and stock of liabilities by level of government (federal, provincial, local).

Information is also available for various sub-sectors of governments such as the health sector and education sector.

A classification of the functions of government (COFOG) table is also available for each level of government. The COFOG tables provide an alternative view of government expenditures – focusing on the intended purpose of the expenditure. They paint a picture of the social and economic role governments play in society and the economy.

Finally a selected set of analytical tables are provided to data users. This includes tables which present government financial stability indicators and debt positions – at book and market value.

Who can use Government Finance Statistics?

Government Finance Statistics can be used by:

• Taxation analysts interested in studying tax rates and sources of revenue
• International bodies such as the OECD, IMF, UN to analyze the activities of the Canadian government relative to other countries.
• International credit agencies who need to advise on the credit worthiness of Canadian governments.
• The financial sector who need to track the governments’ demand and supply of funds in/to the economy.
• Tax payers interested in understanding how their tax dollars are spent and assessing the stewardship of the government.

Complex project

The compilation of the Canadian Government Finance Statistics is a complex project including structural, presentational, conceptual and statistical changes.

Regular users of Statistics Canada’s data are urged to familiarize themselves with these changes.

Users are invited to consult the following links on our website for a more in-depth explanation of the changes.

For more information, contact Media Relations (613-951-4636); statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca.

Ce document est aussi disponible en français.

Introduction

• Preface
• Acknowledgements
• Background
• Structure of the Classification
• CIP Canada 2016 update methodology
• Comparison of CIP 2011 and CIP 2016
• Variant of CIP - Primary groupings
• Assigning CIP codes to instructional programs
• Revision cycle

Preface

CIP Canada 2016 is an update of CIP Canada 2011.

There have been no changes to the CIP classes or structure for this update. The CIP Canada 2016 structure, classes and titles are the same as the CIP Canada 2011 structure, classes and titles.

Comparability between educational data from the United States and Canada was maintained. The CIP Canada 2016 version is comparable with the CIP 2010 version published by the National Center for Education Statistics (NCES) in the United States.

The update consists of adding new illustrative examples to CIP Canada 2016, to ensure that the examples of educational programs in CIP Canada remain current.

This update is based on research and consultation conducted by Statistics Canada on Canadian instructional programs.

Acknowledgements

This update of the Classification of Instructional Programs (CIP) was accomplished through the time, effort and co-operation of numerous people in Statistics Canada.

CIP Canada 2016 was updated under the guidance of Alice Born, Director of Standards Division. CIP Canada could not have been updated without the significant assistance of Statistics Canada's Centre for Education Statistics (CES), and the contributions of all are gratefully acknowledged.

CIP Canada 2016 is published by Standards Division. The revision was developed by Sandra Mialkowski of Standards Division working closely with Jennifer Flack of the CES and supported by Jules Léger, Adriana Yassine, Anna Morrone and Elaine Thomlinson of Standards Division, Annie Doth of System Engineering Division and Isabelle Bussières of the CES. The work was conducted under the supervision of Debra Mair and Kaveri Mechanda. The Internet version of this publication was created jointly by Niloufar Zanganeh and Serge Aumont.

Background

The Classification of Instructional Programs (CIP) was developed in 1980 by the National Center for Education Statistics (NCES) in the United States. NCES released updates in 1985, 1990, 2000 and 2010. CIP Canada 2016 is the third Canadian version of this classification; the first two versions being CIP Canada 2000 and CIP Canada 2011. The CIP Canada 2016 structure, classes and titles are the same as the CIP Canada 2011 structure, classes and titles.

CIP is designed to classify 'instructional programs', which are defined as follows:

A combination of courses and experiences that is designed to accomplish a predetermined objective or set of allied objectives such as preparation for advanced study, qualification for an occupation or range of occupations or simply the increase of knowledge and understanding. (Chismore and Hill, A Classification of Educational Subject Matter, 1978, NCES, p. 165).

Although CIP was specifically designed for the classification of instructional programs, it has also been used to classify courses, and will likely continue to be used for that purpose. CIP can also be used to classify and understand other units. For example, one might use CIP codes to classify institutions by programs offered, students and graduates by programs studied or faculty by programs taught.

The organizing principle behind CIP is 'field of study'. At Statistics Canada, a field of study is defined as a "discipline or area of learning or training" (Statistics Canada, ARCHIVED – 2006 Census Dictionary, Catalogue no. 92-566-XIE).

Prior to adopting CIP, Statistics Canada had several field of study classifications. CIP was chosen to replace them because it was a detailed and proven classification with a 20-year history, was up to date, had an established mechanism for updates and a track record of regular updates, and had a proper hierarchical coding structure. As an added advantage, it would provide comparability with the United States. CIP is now the Statistics Canada standard for field of study classification.

Structure of the Classification

The Classification of Instructional Programs, Canada is a three-tiered hierarchical arrangement of classes with successive levels of disaggregation.

1. The first level is made up of 'series', which are identified using two-digit codes. The series are the most general groupings of related programs. CIP Canada 2016 contains 49 series.
2. The second level is made up of 'subseries', which are identified using four-digit codes. The subseries provide an intermediate grouping of programs that have comparable content and objectives. CIP Canada 2016 contains 387 subseries.
3. The third level is made up of 'instructional program classes', which are identified using six-digit codes. Instructional program classes represent the specific instructional programs and are the most detailed level within CIP. They are the basic unit of analysis used in reporting instructional programs. CIP Canada 2016 contains 1,689 instructional program classes.

The format for class labels at the series level consists of a two-digit code followed by a period, then by the program title. For example: 01. Agriculture, agriculture operations and related sciences.

The format for class labels at the subseries level consists of the two-digit series code, followed by a period, then by a further two digits. The code is followed by the program title. For example: 01.01 Agricultural business and management. There is at least one subseries within every series.

The format for class labels at the instructional program class level consists of the four-digit subseries code, followed by a further two digits. This is followed by the program title. For example: 01.0101 Agricultural business and management, general. There is at least one instructional program class within every subseries.

Program descriptions identify the objectives and content of the instructional programs. Program descriptions using the phrase "any program that focuses on" describes academic and general programs. Program descriptions using phrases such as "program that prepares individuals to" or "program that generally prepares individuals to" describe programs designed to prepare individuals for specific occupations.

Within each subseries, instructional program classes are listed in numerical sequence. Classes with a more general focus appear at the beginning of the sequence. A residual class appears at the end of the sequence to cover instructional programs that belong in the subseries but are not covered by another instructional program class. For example, within subseries 01.01, Agricultural business and management, instructional program class 01.0101 Agricultural business and management, general appears first and instructional program class 01.0199, Agricultural business and management, other appears last.

Occasional gaps may occur in the numerical sequence of classes. They result either from deletions of classes that appeared in previous editions of CIP or from moves of classes to new locations in the classification.

Titles are generally one word or phrase, such as 'Psychology' or 'Civil engineering', that conveys the most commonly used or accepted name describing a program.

In some cases, more than one title may be used for the same instructional program. To reflect this, the title of the corresponding instructional program uses words or phrases separated by slashes. This is done in the following situations:

• two or more commonly accepted names exist for the same program, or
• the same program has different names at different educational levels, or
• the program has undergone a recent name change but many institutions still use the older name for the program.

For example, subseries 26.07. Zoology/animal biology includes programs that focus on the study of zoology and/or animal biology.

CIP Canada 2016 update methodology

Statistics Canada's release of CIP Canada 2016 is an update only, it is not a revision of CIP.

There have been no changes to the CIP classes or structure for this update. The update consists of adding new illustrative educational program examples to ensure that CIP remains current.

This update maintains the high degree of commonality between the two national versions of CIP, continues to permit close comparability between Canadian and U.S. educational data, and facilitates a common approach to future classification revisions.

Illustrative examples accompany all CIP Canada 2016 instructional program classes. Illustrative examples are examples of the content that belongs in the corresponding class. They appear under the heading "Illustrative example(s)". As in the past, the examples were developed based mainly on program names provided in response to the previous Census of Population. The wording used thus reflects the way respondents would typically describe these programs. However, CIP Canada 2016 has also tried to include more program titles actually used at Canadian postsecondary institutions.

Inclusions are being introduced to CIP in CIP Canada 2016. Inclusions are borderline cases that belong in the corresponding class. They appear under the heading "Inclusion(s)". Inclusions are similar to illustrative examples, in that they help clarify the content that belongs in each class.

CIP Canada 2016 has only four inclusions: "victimology" in 45.0401 Criminology, "art restoration" in 50.0703 Art history, criticism and conservation, "fundraising" in 52.0206 Non-profit/public/organizational management, and "fundraising management" in 52.0206 Non-profit/public/organizational management.

Exclusions also accompany most instructional program classes. Exclusions clarify the boundaries of the instructional program class by identifying related instructional program classes and similar programs that are classified elsewhere. They appear under the heading "Exclusion(s)". The instructional programs cited in the Exclusions were selected from among the examples of related instructional program classes.

The lists of illustrative examples and exclusions are meant to facilitate the use of CIP, not to be exhaustive.

Comparison of CIP 2011 and CIP 2016

Classes

There were no new classes, splits, mergers or deletions. The CIP 2016 classes are the same as the CIP 2011 classes.

Structure

There was no restructuring of the classification. The CIP 2016 structure is the same as the CIP 2011 structure.

Titles

There were no changes to class titles. The names of the CIP 2016 classes are the same as the names of the CIP 2011 classes.

Examples

The existing examples were reviewed for usefulness and accuracy, and many examples of new instructional programs were added. Care was taken to ensure that all content illustrated by the examples in one language was also conveyed by the examples in the other language. The examples used are illustrative of possible survey responses and of actual program names.

Variant of CIP – Primary groupings

A variant of CIP has been developed jointly by Statistics Canada and the National Center for Education Statistics. It is based on work undertaken as a part of the creation of the North American Product Classification System (NAPCS) by Canada, the United States and Mexico.

The variant is comprised of thirteen 'primary groupings' that are a convenient and useful basis for summarizing and analysing more detailed classes. This variant must be used for the presentation or analysis of highly aggregated data.

Two general observations about the primary groupings should be kept in mind:

1. Groupings are based on field of study and are independent of the level at which the study was undertaken. Series 21. Pre-technology education/pre-industrial arts programs and series^CAN 53. High school/secondary diploma and certificate programs are exceptions to this rule; these two series are included in the Other category.
2. Primary groupings comprise entire series, with one exception: series 30. Multidisciplinary/Interdisciplinary Studies has been split into its constituent subseries. Those subseries have then been grouped with the closest equivalent series.

The primary groupings are as follows:

The following table details the special aggregation structure. The first two columns list the primary grouping (code and title). The last two columns give the information on constituent CIP series and subseries.

Assigning CIP codes to instructional programs

To ensure consistency at the national level, Statistics Canada codes program data submitted from household surveys and from administrative data in institutions' files. This coding is done with the help of software that has been developed to provide a combination of auto-coding and computer-assisted coding. The basic approach is described below. This will be of particular interest to institutions or organizations that need to do their own CIP coding.

The basic coding tool is the classification manual available in electronic format.

In addition to the manual, those coding programs using CIP should ensure that they also have the following information:

• program title
• program description
• type of institution
• duration of study
• nature of the academic award

With this information at hand, the coding of a single-discipline instructional program is relatively straightforward. The coder selects all likely series and from among those chooses the most applicable. The process is then repeated at the subseries level, and again at the instructional program class level. This top-down process is facilitated by referring to the illustrative examples and exclusions in the manual.

Several examples are presented to show the coding process.

Suppose the coder has the following information:

• program title: Canadian history
• program description: five-credit MA through department of history, faculty of arts and sciences
• type of institution: university
• duration of study: one year postgraduate
• academic award: MA

The academic award confirms that the program is a credit course. The coder will next try to identify the appropriate two-digit series. In this case, from the title and description, series 54. History is the clear choice. Within series 54., only subseries 54.01 History exists. Within 54.01, instructional program class 54.0107 Canadian history is selected. By referring to the illustrative examples, the coder will find that Canadian history is explicitly part of this class. This confirms the results of the top-down process. The institution type and duration of study were not used.

In a second case, the coder has the following information:

• program title: Mathematical physics
• program description: five-credit MSc through department of physics, faculty of science
• type of institution: university
• duration of study: postgraduate
• academic award: MSc

The academic award confirms that the program is a credit course. The coder will next try to identify the appropriate two-digit series-in this case, series 27. Mathematics and statistics, series 40. Physical sciences and series 41. Science technologies/technicians are possibilities. Based on the program title and description, the program is not pure mathematics, nor is it technological in nature. This rules out series 27. and 41. Within series 40., subseries 40.08 Physics is most applicable. Within 40.08, instructional program class 40.0810 Theoretical and mathematical physics is selected. By referring to the illustrative examples, the coder will find that Mathematical physics is part of this class. Use of the illustrative examples in this way confirms the results of the top-down process. The institution type and duration of study were not used.

In a third case, the coder has the following information:

• program title: Film law
• program description: Master of Laws through faculty of law with specialization in film law
• type of institution: university
• duration of study: postgraduate
• academic award: Master of Laws (LLM)

The academic award confirms that the program is a credit course. The coder will next try to identify the appropriate two-digit series. Possible candidates are series 22. Legal professions and studies and series 50. Visual and performing arts. Series 50. focuses on the actual performance. Series 22. prepares individuals for the legal profession and related research. Based on the program title and description, series 22. is the clear choice. This is an advanced law degree and therefore, within series 22., the program belongs in subseries 22.02 Legal research and advanced professional studies (Post-LLB/JD). Within 22.02, instructional program class 22.0212 Intellectural property law (LLM, LLD, JSD/SJD) is selected. Referring to the illustrative examples confirms this.

In a fourth case, the coder has the following information:

• program title: Truck and coach mechanic
• program description: This apprenticeship certificate program completes the in-school requirements for the truck and coach technician apprentices. Students are offered instruction in subjects such as trade practices and auxiliary systems, engine systems, electrical systems, fuel systems, drive trains, and steering, suspension, and brake systems.
• type of institution: community college
• duration of study: one year
• academic award: certificate

The academic award and duration of study, together, confirm that the program is a credit course. The top-down process continues as previously. Using the institution type, program title and program description, the coder will choose series 47. Mechanic and repair technologies/technicians, subseries 47.06 Vehicle maintenance and repair technologies, and then instructional program class 47.0613 Medium/heavy vehicle and truck technology/technician. By referring to the illustrative examples, the coder will find that Truck and coach mechanic is part of this class and thereby confirm the coding choice.

The coding of combined majors, also called 'double majors' or 'joint majors,' and multidisciplinary programs follows the same top-down approach. The difference here involves the choice of residual class in the event that there is no specific class for the combined program. The approach to combined majors and multidisciplinary studies is as follows:

• Proceeding top-down, the coder tries to find an instructional program class that explicitly covers the combined program. If such a class is found, the program can normally be assigned directly to that class. For example, a double major involving 11.0501 Computer systems analysis/analyst and 27.0301 Applied mathematics, general would be coded to 30.0801 Mathematics and computer science.
• Otherwise, if the component disciplines belong to the same subseries-but not the same instructional program class-the program can normally be coded to the residual category (a class ending in 99) within that subseries. For example, a double major involving 14.0902 Computer hardware engineering and 14.0903 Computer software engineering would be coded to 14.0999 Computer engineering, other.
• Otherwise, if the component disciplines belong to the same series-but not the same subseries-the program can normally be coded to the residual category (a class ending in 9999) within that series. For example, a double major involving 14.0902 Computer hardware engineering and 14.1101 Engineering mechanics would be coded to 14.9999 Engineering, other.
• Otherwise, if the component disciplines belong to different series, the program is normally coded to instructional program class 30.9999 Multidisciplinary/interdisciplinary studies, other. For example, a double major involving 14.0902 Computer hardware engineering and 27.0301 Applied mathematics, general would be coded to 30.9999 Multidisciplinary/interdisciplinary studies, other.
• An exception to the use of 30.9999 involves combined/joint language majors. Language studies are covered by series 16. Aboriginal and foreign languages, literatures and linguistics, series 23. English language and literature/letters and series 55. French language and literature/letters. Where programs involve combinations belonging to two or more of these series, the combined programs are coded to residual instructional program classes within series 16. Aboriginal and foreign languages, literatures and linguistics. For example, a combined French/Spanish major is coded to 16.0999 Romance languages, literatures and linguistics, other. For similar reasons, a combined French/German major or a combined French/English major is coded to 16.9999 Aboriginal and foreign languages, literatures and linguistics, other.

Revision cycle

CIP has a 10-year revision cycle. Revising a statistical classification involves a complete review of the conceptual basis of the classification as well as a review of user needs and available tools. Part of that review involves determining whether proposed changes would work better than the current practices and thus warrant a revised version of the classification.

Between revisions, updates can be made to incorporate new instructional programs being offered.

1. My business is involved in Logging. Why did I receive a survey on manufacturing?

The Annual Survey of Manufacturing and Logging Industries (ASML) collects information on both manufacturing and logging activities. In fact, survey respondents represent many types of operations including those involved in less "traditional" models like service provision (e.g. contract logging), custom manufacturing, and other diverse operations.

The classifications on file might be applicable for this business or organization, even if it is not exactly how you would describe this business or organization's main activity. If you're still uncertain please call 1-800-858-7921 for further instructions.

2. What if my business did not operate for the full year?

If your business is currently closed and will not reopen, select Ceased all operations only. You should still report to this survey for the activities that took place during this reporting period.

If your business is currently closed but will reopen and/or is planning to reopen, select Temporarily Inactive but will reopen. "Temporarily Inactive" could be used to indicate labour actions (strike/lockouts), scheduled retooling, or international trade actions (duties/quotas) that result in a temporary cease of operations with planned resumption in the short term. You should still report to this survey for the activities that took place during this reporting period.

3. Why am I asked to provide detail on raw materials and manufactured products?

These data are used to measure and understand the flows of goods (and other economic flow) between provinces and between Canada and other countries. They are used by the business community, manufacturing associations, federal and provincial departments and international organizations to profile the manufacturing and logging industries, undertake market studies, forecast demand and develop trade policies.

4. What if my raw materials and/or my finished products are not listed on the questionnaire?

Your questionnaire will list pre-identified products (raw materials and finished goods) that are relatively common to the industry. However, there are many different possibilities for what your business uses and produces. If you are unable to find the relevant products in either section please provide the detail on these products at the bottom of each section along with a written description.

If this level of detail is not available in your records, please provide estimates.

5. What if my business cannot report the level of detail requested for raw materials and finished products?

This information is important, and is used to measure and understand the flows of goods between provinces and Canada. If your business does not have the details requested, please provide your best estimate for the main products used in the manufacturing process and the main products manufactured.

Example:
For logging operations other than contract logging, please provide your best estimate for the main species your business cuts. For contract loggers, see question 7.

For lumber and wood product manufactures, please provide your best estimate for the main raw materials used in the manufacturing process and the main products manufactured.

6. Where should I report revenues from Logging operations?

Revenues from sales of logs and wood residue, including by-products such as wood chips, sawdust, etc., should be reported as Sales of logs, wood residue and manufactured products. When logs are transferred to other business units or a head office of your firm, the sales value of these logs should be reported at the value shown on your books of account (i.e., book transfer value).

For revenue from stumpage sales:

If your business is mainly engaged in logging operations, this should be reported as Revenue from stumpage sales;

For all other businesses, this should be reported under Sales of logs, wood residue and manufactured products.

7. What is the revenue from logging service fees and/or custom work?

Some logging operations carry out their logging operations on behalf of others in return for a logging service fee. In this example the first business would harvest the timber but would not own tenure (i.e. does not pay stumpage fees).

The revenue generated from the logging services should be reported under Revenue from logging service fees and/or custom work. Do not report revenue from these activities as sales of logs.

Alternatively, if your business pays logging service fees to a logging service provider, this expense should be reported under Subcontracts. (Note: Not all respondents receive the same questions. If this question is asked on your questionnaire it will be found in the "Expenses" section)

8. What if I don't alter or process the goods that I sell? Where do I report revenues for goods that I sell "as is"?

Your business may buy and sell goods without any further processing at your business unit. These goods should be reported as Purchases of goods for resale, as is and Sales of goods purchased for resale, as is

For example, if a sawmill purchases logs, and subsequently finds some of these logs to be unsuitable for further production they may decide to sell these logs "as is".

• The original purchase should be reported under Purchases of goods for resale, as is, and
• The revenue generated from this sale should be reported under Sales of goods purchased for resale, as is

9. How should I report if my business does not own or purchase any raw materials?

Stumpage fees should be reported under Crown charges (for logging, mining and energy industries only). This mainly applies to logging operations (including businesses that have a different main business activity)

Some manufacturers earn revenues by providing manufacturing services to other businesses (who may own the products and materials involved). These revenues should be reported under Revenue from manufacturing service fees or and/or custom work.

10. What are stumpage fees?

The term "Stumpage fee" refers to amounts paid for the right to harvest timber from Crown land.

11. What if our raw materials are transferred from another branch of the same company? How should I report these?

You should report the value shown on your books of account (i.e., book transfer value) of raw materials transferred from another branch of your company.

12. What if this business only purchases the raw materials but does not perform any manufacturing? How do I report when I contract out this work to a manufacturer?

If your business pays manufacturing service fees to a manufacturing service provider, this expense should be reported under Subcontracts. (Note: Not all respondents receive the same questions. If this question is asked on your questionnaire it will be found in the "Expenses" section)

You should report your raw material purchases under Purchases of raw materials and components

13. How should I report expenses paid to contract loggers?

Do not report the expenses as purchase of logs. If your business owns tenure (i.e. has paid stumpage fees) and pays logging service fees to a logging service provider, this expense should be reported under Subcontracts. (Note: Not all respondents receive the same questions. If this question is asked on your questionnaire it will be found in the "Expenses" section)

14. Where should I report logging road costs?

Please exclude logging road costs (e.g. road clearing, ploughing, and grating) from Purchases of raw materials and components.