Integrated Business Statistics Program (IBSP)

Reporting Guide

This guide is designed to assist you as you complete the Survey on Capital and Repair Expenditures Actual 2015.

Your answers are confidential.

Statistics Canada is prohibited by law from releasing any information it collects which could identify any person, business, or organization, unless consent has been given by the respondent or as permitted by the Statistics Act.

Statistics Canada will use information from this survey for statistical purposes.

Table of contents

Reporting period information
Definition
Industry characteristics

Reporting period information

For the purpose of this survey, please report information for your 12 month fiscal period for which the final day occurs on or between April 1, 2015 — March 31, 2016.
Here are twelve common fiscal periods that fall within the targeted dates:

• May 1, 2014 to April 30, 2015
• June 1, 2014 to May 31, 2015
• July 1, 2014 to June 30, 2015
• August 1, 2014 to July 31, 2015
• September 1, 2014 to August 31, 2015
• October 1, 2014 to September 30, 2015
• November 1, 2014 to October 31, 2015
• December 1, 2014 to November 30, 2015
• January 1, 2015 to December 31, 2015
• February 1, 2015 to January 31, 2016
• March 1, 2015 to February 29, 2016
• April 1, 2015 to March 31, 2016

Here are other examples of fiscal periods that fall within the required dates:

• September 18, 2014 to September 15, 2015 ( e.g. , floating year-end)
• June 1, 2015 to December 31, 2015 ( e.g ., a newly opened business)
   

Definition
 

Dollar amounts

• all dollar amounts reported should be rounded to thousands of Canadian dollars ( e.g ., $6,555,444.00 should be rounded to $6,555);
• percentages should be rounded ( e.g ., 37%, 76%, 94%);
• your best estimates are acceptable when precise figures are not available;

What are Capital Expenditures?

Capital Expenditures are the gross expenditures on fixed assets for use in the operations of your organization or for lease or rent to others.

Include:

• Cost of all new buildings, engineering, machinery and equipment which normally have a life of more than one year and are charged to fixed asset accounts
• Modifications, acquisitions and major renovations
• Capital costs such as feasibility studies, architectural, legal, installation and engineering fees
• Subsidies
• Capitalized interest charges on loans with which capital projects are financed
• Work done by own labour force
• Acquisitions to work in progress

How to Treat Leases

Include:

• assets acquired as a lessee through either a capital or financial lease;
• assets acquired for lease to others as an operating lease.

Exclude

• assets acquired for lease to others, either as a capital or financial lease.

Information for Government Departments
The following applies to government departments only:

• Include all capital expenditures without taking into account the capitalization threshold of your department;
• grants and/or subsidies to outside entities ( e.g. , municipalities, agencies, institutions or businesses) are to be excluded;
• Departments are requested to exclude from reported figures budgetary items pertaining to any departmental agency and proprietary crown corporation as they are surveyed separately;
• Federal departments are to report expenditures paid for by the department, regardless of which department awarded the contract;
• Provincial departments are to include any capital expenditures on construction (exclude outlays for land) or machinery and equipment, for use in Canada, financed from revolving funds, loans attached to revolving funds, other loans, the Consolidated Revenue Fund or special accounts.
   

Industry characteristics

New Assets: Report capital expenditures for acquisitions of new assets including the portion of work in progress for the current year. Include imports of used assets since they represent newly acquired assets for the Canadian economy.

Purchase of Used Canadian Assets: The object of our survey is to measure the acquisitions of new fixed assets separately from used fixed assets in the Canadian economy as a whole. This is because the acquisition of used assets does not increase the total inventory of fixed assets, it only transfers them within the Canadian economy. Report acquisition of used assets separately in this column.

Renovation, Retrofit, Refurbishing, Overhauling and Restoration: Report capital expenditures for existing assets being upgraded, renovated, retrofitted, refurbished, overhauled or restored.

Expected Useful Life of Assets: Report the expected life of the asset in years.

Land: Capital expenditures for land should include all costs associated with the purchase of the land that are not amortized or depreciated. Improvements of land should be reported in Non-Residential Construction.

Residential Construction: Capital expenditures incurred during the reporting period for residential structures (on a contracted basis and/or by your own employees).

• Include the housing portion of multi-purpose projects and of townsites.
• Exclude buildings that have accommodation units without self contained or exclusive use of bathroom and kitchen facilities ( e.g ., some student and senior citizens residences) and associated expenditures on services.

Non-Residential Construction: Capital expenditures incurred during the reporting period for non-residential building and engineering construction (on a contracted basis and/or by your own employees) whether for your own use or rent to others.

Include:

• Manufacturing plants, warehouses, office buildings, shopping centres, etc.;
• Roads, bridges, sewers, electric power lines, underground cables, etc.;
• The cost of demolition of buildings, land servicing and site preparation;
• Leasehold and land improvements.
• Acquisitions to work in progress;
• Townsite facilities such as streets, sewers, stores and schools;
• Buildings that have accommodation units without self contained or exclusive use of bathroom and kitchen facilities ( e.g ., some student and senior citizen residences) and associated expenditures on services;
• All preconstruction planning and design costs such as engineer and consulting fees and any materials supplied to construction contractors for installation, etc.

Machinery and Equipment

Capital expenditures incurred during the reporting period for machinery and equipment, whether for your own use or for lease or rent to others.

Include:

• Automobiles, trucks, professional and scientific equipment, office and store furniture and appliances;
• Computers (hardware and software), broadcasting, telecommunications and other information and communication technologies equipment;
• Motors, generators, transformers;
• Any capitalized tooling expenses;
• Acquisitions to work in progress;
• Progress payments paid out before delivery in the year in which such payments are made;
• Any balance owing or holdbacks should be reported in the year the cost is incurred.

Construction structures should be classified to an asset according to its principal use unless it is a multi-purpose structure where we would like you to separate the components. The cost of any machinery and equipment which is an integral or built-in feature of the structure (i.e. elevators, heating equipment, sprinkler systems, environmental controls, intercom systems, etc.) should be reported as part of that structure as well as landscaping, associated parking lots, etc.

Non-Capital Repair and Maintenance Expenditures: This question represents the repair and maintenance of assets in contrast to the acquisition of assets or the renovation of assets.

Include:

• Gross non-capital repair and maintenance expenditures on non-residential buildings, other structures and on machinery and equipment;
• Value of repair work done by your own employees as well as payments to persons outside your employ;
• Building maintenance such as janitorial services, snow removal and sanding;
• Equipment maintenance such as oil changes and lubrication of vehicles and other machinery.

Machinery and equipment are generally housed in structures and can be removed or replaced without significantly altering the structure.

Work in Progress: Work in progress represents accumulated costs since the start of capital projects which are intended to be capitalized upon completion.

Typically capital investment includes any expenditure on an asset in which its life is greater than one year. Capital items charged to operating expenses are defined as expenditures which could have been capitalized as part of the fixed assets, but for various reasons, have been charged to current expenses.

Cost component of expenditures

Total: These are the amounts to be divided between contractors and company’s own workers.

Value of Work Performed by Contractors: Work performed by contractors are contract billings or equivalent including holdbacks.

Value of Own Account Work: In addition to own account work, include all materials and supplies provided free to contractors and all architects, engineering and consultants fees and similar services.

Salaries and Wages: Show the total value of salaries and wages paid to your employees. Salaries and wages are gross earnings before deductions such as income tax and include incentive bonuses and vacation pay but exclude fringe benefits.

Materials and Supplies: Report total cost of materials and supplies used by your own employees and those provided free to contractors relating to the expenditures reported.

Other Charges: Examples of other charges are insurance, power, telephone and also architectural, legal, and engineering fees considered to be applicable to the expenditures reported.

Operating lease
The lessor bears the risk of ownership and retains a significant “residual” economic interest in the leased property. The lessee has the right to temporary use of the property, for a term shorter than the economic life of the property, in exchange for regular payments. At the end of the lease, the lessee has the option of purchasing the property at fair market value.

Capital or financial lease

These leases are similar in that the lessor in effect finances the “purchase” of the leased property by the lessee and retains a security interest in the leased property. The lessee retains the leased property for substantially all of its economic life. The lessee usually has the option at the end of the lease to purchase the property at a “bargain” price.

Disposal and sales of fixed assets

Selling price

The total value, or the sales of fixed assets which were disposed of or sold, even if traded in for credit in the acquisition or purchase of new fixed assets. When land and buildings are sold together, please report the selling price of the land separately, along with other land sales.

Gross book value

This value should represent total capital expenditures for an asset, at and since the time of original construction or purchase, including all subsequent capital expenditures for the purpose of modernization, expansion, etc. Any subsidies received should not be subtracted.

Age

Report the age of the fixed asset at the time of disposal.
If you have disposed of or sold similar assets of varying ages, report them separately or combine the data and provide a weighted average for the ages.

Integrated Business Statistics Program (IBSP)

Reporting Guide

This guide is designed to assist you as you complete the Survey on Capital and Repair Expenditures Actual 2014.

Your answers are confidential.

Statistics Canada is prohibited by law from releasing any information it collects which could identify any person, business, or organization, unless consent has been given by the respondent or as permitted by the Statistics Act.

Statistics Canada will use information from this survey for statistical purposes.

Table of contents

Data-sharing agreements
Record linkages
Reporting period information
Definition
Industry characteristics

Data sharing Agreements

Data sharing Agreements

To reduce respondent burden, Statistics Canada has entered into data-sharing agreements with provincial and territorial statistical agencies and other government organizations, which have agreed to keep the data confidential and use them only for statistical purposes. Statistics Canada will only share data from this survey with those organizations that have demonstrated a requirement to use the data.

Section 11 of the Statistics Act provides for the sharing of information with provincial and territorial statistical agencies that meet certain conditions. These agencies must have the legislative authority to collect the same information, on a mandatory basis, and the legislation must provide substantially the same provisions for confidentiality and penalties for disclosure of confidential information as the Statistics Act. Because these agencies have the legal authority to compel businesses to provide the same information, consent is not requested and businesses may not object to the sharing of the data. For this survey, there are Section 11 agreements with the provincial and territorial statistical agencies of Newfoundland and Labrador, Nova Scotia, New Brunswick, Quebec, Ontario, Manitoba, Saskatchewan, Alberta, British Columbia, and the Yukon.

Section 12 of the Statistics Act provides for the sharing of information with federal, provincial or territorial government organizations. Under Section 12, you may refuse to share your information with any of these organizations by writing a letter of objection to the Chief Statistician and returning it with the completed questionnaire. Please specify the organizations with which you do not want to share your data.

For this survey, there are Section 12 agreements with the statistical agencies of Prince Edward Island, the Northwest Territories and Nunavut as well as National Energy Board, Natural Resources Canada and Environment Canada.

For agreements with provincial and territorial government organizations, the shared data will be limited to information pertaining to business establishments located within the jurisdiction of the respective province or territory.

Record linkages

To enhance the data from this survey, Statistics Canada may combine it with information from other surveys or from administrative sources.

Reporting period information

For the purpose of this survey, please report information for your 12 month fiscal period for which the final day occurs on or between April 1, 2014 — March 31, 2015.
Here are twelve common fiscal periods that fall within the targeted dates:

• May 1, 2013 to April 30, 2014
• June 1, 2013 to May 31, 2014
• July 1, 2013 to June 30, 2014
• August 1, 2013 to July 31, 2014
• September 1, 2013 to August 31, 2014
• October 1, 2013 to September 30, 2014
• November 1, 2013 to October 31, 2014
• December 1, 2013 to November 30, 2014
• January 1, 2014 to December 31, 2014
• February 1, 2014 to January 31, 2015
• March 1, 2014 to February 28, 2015
• April 1, 2014 to March 31, 2015

Here are other examples of fiscal periods that fall within the required dates:

• September 18, 2013 to September 15, 2014 ( e.g. ., floating year-end)
• June 1, 2014 to December 31, 2015 ( e.g. ., a newly opened business)

Definition

Dollar amounts

• all dollar amounts reported should be rounded to thousands of Canadian dollars ( e.g. ., $6,555,444.00 should be rounded to $6,555);
• percentages should be rounded ( e.g. ., 37%, 76%, 94%);
• your best estimates are acceptable when precise figures are not available;

What are Capital Expenditures?

Capital Expenditures are the gross expenditures on fixed assets for use in the operations of your organization or for lease or rent to others.

Include:

• Cost of all new buildings, engineering, machinery and equipment which normally have a life of more than one year and are charged to fixed asset accounts
• Modifications, acquisitions and major renovations
• Capital costs such as feasibility studies, architectural, legal, installation and engineering fees
• Subsidies
• Capitalized interest charges on loans with which capital projects are financed
• Work done by own labour force
• Acquisitions to work in progress

How to Treat Leases

Include:

• assets acquired as a lessee through either a capital or financial lease;
• assets acquired for lease to others as an operating lease.

Exclude

• assets acquired for lease to others, either as a capital or financial lease.

Information for Government Departments
The following applies to government departments only:

Include

• all capital expenditures without taking into account the capitalization threshold of your department;
• grants and/or subsidies to outside entities ( e.g. ., municipalities, agencies, institutions or businesses) are not to be included;
• Departments are requested to exclude from reported figures budgetary items pertaining to any departmental agency and proprietary crown corporation as they are surveyed separately;
• Federal departments are to report expenditures paid for by the department, regardless of which department awarded the contract;
• Provincial departments are to include any capital expenditures on construction (exclude outlays for land) or machinery and equipment, for use in Canada, financed from revolving funds, loans attached to revolving funds, other loans, the Consolidated Revenue Fund or special accounts.

Industry characteristics

Asset codes: Capital expenditures are to be reported by asset type code. The code for each main asset type is located on page 6, 7, 8 and 9 of this guide. These codes are to be used in question 2 column 1, question 3 column 1 and question 7.
• If you have purchased more than one asset in a particular asset group, report them separately if they had a different expected useful life (question 2 and 3, column 6), otherwise you may combine the data;
• The use of “Other” codes is to be avoided, if possible.
• In question 2 and 3, construction and machinery and equipment type of assets are separated. This is not necessary in question 7;
• If more lines are required for question 2, 3 or 7, please photocopy the relevant section(s) and attach to the questionnaire.
New Assets: Report Capital Expenditures for acquisitions of new assets including the portion of work in progress for the current year. Include imports of used assets since they represent newly acquired assets for the Canadian economy.

Purchase of Used Canadian Assets: The object of our survey is to measure the acquisitions of new fixed assets separately from used fixed assets in the Canadian economy as a whole. This is because the acquisition of used assets does not increase the total inventory of fixed assets, it only transfers them within the Canadian economy. Report acquisition of used assets separately in this column.

Renovation, Retrofit, Refurbishing, Overhauling and Restoration: Report Capital Expenditures for existing assets being upgraded, renovated, retrofitted, refurbished, overhauled or restored.

Expected Useful Life of Assets: Report the expected life of the asset in years.

Land: Capital expenditures for land should include all costs associated with the purchase of the land that are not amortized or depreciated. Improvements of land should be reported in Non-Residential Construction.

Residential Construction: Capital expenditures incurred during the reporting period for residential structures (on a contracted basis and/or by your own employees).

Include the housing portion of multi-purpose projects and of townsites.
Exclude buildings that have accommodation units without self contained or exclusive use of bathroom and kitchen facilities ( e.g. ., some student and senior citizens residences) and associated expenditures on services.

Non-Residential Construction: Capital expenditures incurred during the reporting period for non-residential building and engineering construction (on a contracted basis and/or by your own employees) whether for your own use or rent to others.

Include:

• Manufacturing plants, warehouses, office buildings, shopping centres, etc.;
• Roads, bridges, sewers, electric power lines, underground cables, etc.;
• The cost of demolition of buildings, land servicing and site preparation;
• Leasehold and land improvements.
• Acquisitions to work in progress;
• Townsite facilities such as streets, sewers, stores and schools;
• Buildings that have accommodation units without self contained or exclusive use of bathroom and kitchen facilities ( e.g. ., some student and senior citizen residences) and associated expenditures on services;
• All preconstruction planning and design costs such as engineer and consulting fees and any materials supplied to construction contractors for installation, etc.

Machinery and Equipment

Capital expenditures incurred during the reporting period for machinery and equipment, whether for your own use or for lease or rent to others.

Include:

• Automobiles, trucks, professional and scientific equipment, office and store furniture and appliances;
• Computers (hardware and software), broadcasting, telecommunications and other information and communication technologies equipment;
• Motors, generators, transformers;
• Any capitalized tooling expenses;
• Acquisitions to work in progress;
• Progress payments paid out before delivery in the year in which such payments are made;
• Any balance owing or holdbacks should be reported in the year the cost is incurred.

Non-Capital Repair and Maintenance Expenditures: This question represents the repair and maintenance of assets in contrast to the acquisition of assets or the renovation of assets.

Include:

• Gross non-capital repair and maintenance expenditures on non-residential buildings, other structures and on machinery and equipment;
• Value of repair work done by your own employees as well as payments to persons outside your employ;
• Building maintenance such as janitorial services, snow removal and sanding;
• Equipment maintenance such as oil changes and lubrication of vehicles and other machinery.

Work in Progress: Work in progress represents accumulated costs since the start of capital projects which are intended to be capitalized upon completion.

Typically capital investment includes any expenditure on an asset in which its life is greater than one year. Capital items charged to operating expenses are defined as expenditures which could have been capitalized as part of the fixed assets, but for various reasons, have been charged to current expenses.

Cost component of expenditures

Total: These are the amounts to be divided between contractors and company’s own workers.

Value of Work Performed by Contractors: Work performed by contractors are contract billings or equivalent including holdbacks.

Value of Own Account Work: In addition to own account work, include all materials and supplies provided free to contractors and all architects, engineering and consultants fees and similar services.
Salaries and Wages: Show the total value of salaries and wages paid to your employees. Salaries and wages are gross earnings before deductions such as income tax and include incentive bonuses and vacation pay but exclude fringe benefits.

Materials and Supplies: Report total cost of materials and supplies used by your own employees and those provided free to contractors relating to the expenditures reported.

Other Charges: Examples of other charges are insurance, power, telephone and also architectural, legal, and engineering fees considered to be applicable to the expenditures reported.

Operating lease
The lessor bears the risk of ownership and retains a significant “residual” economic interest in the leased property. The lessee has the right to temporary use of the property, for a term shorter than the economic life of the property, in exchange for regular payments. At the end of the lease, the lessee has the option of purchasing the property at fair market value.

Capital or financial lease

These leases are similar in that the lessor in effect finances the “purchase” of the leased property by the lessee and retains a security interest in the leased property. The lessee retains the leased property for substantially all of its economic life. The lessee usually has the option at the end of the lease to purchase the property at a “bargain” price.

Disposal and sales of fixed assets

Selling price

The total value, or the sales of fixed assets which were disposed of or sold, even if traded in for credit in the acquisition or purchase of new fixed assets. When land and buildings are sold together, please report the selling price of the land separately, along with other land sales.

Gross book value

This value should represent total capital expenditures for an asset, at and since the time of original construction or purchase, including all subsequent capital expenditures for the purpose of modernization, expansion, etc. Any subsidies received should not be subtracted.

Age

Report the age of the fixed asset at the time of disposal.
If you have disposed of or sold similar assets of varying ages, report them separately or combine the data and provide a weighted average for the ages.

Non-residential construction

Asset description and codes

The asset items and categories listed below are groupings of fixed assets generally having a similar function which can apply to various industries.

Construction structures should be classified to an asset according to its principal use unless it is a multi-purpose structure where we would like you to separate the components. The cost of any machinery and equipment which is an integral or built-in feature of the structure (i.e. elevators, heating equipment, sprinkler systems, environmental controls, intercom systems, etc.) should be reported as part of that structure as well as landscaping, associated parking lots, etc.

Industrial building

Commercial Building

Institutional Building

Marine Engineering

Transportation Engineering

Waterworks Engineering

Sewage Engineering

Electric Power Engineering

Communication Engineering

Oil and Gas Engineering

Mining

Other Engineering

Other Construction (not specified elsewhere)

Machinery and equipment

Asset description and codes

The asset items and categories listed below are groupings of fixed assets generally having a similar function that can apply to various industries.
a) Machinery and equipment are generally housed in structures and can be removed or replaced without significantly altering the structure

Transportation Equipment

Processing Equipment

Computers, Computer Software and Office Equipment

Telecommunications, Cable and Broadcasting Equipment

Production Plant

Other Machinery and Equipment