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Information and Communications Technologies
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Financial and Statistical Definitions

Last Update: April 2002

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Financial and Statistical Definitions

Readers are advised to consult with Statistics Canada on specific methodologies and definitions used throughout this publication, the relevant Statistics Canada documents contain such information.

General Definitions

Gross Domestic Product (GDP)
A measure of an industry's value-added to the economy. GDP is essentially total sales by the industry (gross output) less inputs of goods and services provided by sources other than the industry itself. GDP at basic prices means reporting income as the amount receivable by producers for the production or sale of products minus any tax payable, plus any subsidy receivable, on those products.
Intramural R&D Expenditures
Expenditures for R&D work performed by the reporting company, including work financed by others.
Capital Expenditures
Capital expenditures include the cost of procuring, constructing and installing new durable plant and machinery and equipment, whether for replacement of worn or obsolete assets, as additions to existing assets or for lease or rent to others.

Trade Data Definitions

There is a fundamental difference between trade and production data. Production data also captures secondary production which occurs at the establishment level and differs from the principal activity to which they are classified. Trade data, on the other hand, classifies products as they cross the border regardless of the principal activity of the producing establishment. This data is captured as a commodity rather than as an industry good. In an effort to quantify industry trade, Statistics Canada associates the exported commodity code with an industry code. A simple example would be the case of an exported automobile engine which would be attributed to the Canadian Motor Vehicle Engine and Engine Parts Industry even though it may have been produced by a plant classified to the Motor Vehicle Industry. The same concepts also apply to service data. Readers should note that this is a crude estimation of industry trade and is susceptible to errors. However, in the absence of a better measurement method, this type of estimation is one of few means available to estimate industrial trade. Please refer to the "Sources and Technical Notes" for further details.

Exports
Exports include both domestic exports and re-exports. Domestic exports include goods grown, extracted or manufactured in Canada, including goods of foreign origin which have been materially transformed in Canada. Re-exports are exports of foreign goods which have not been materially transformed in Canada, including foreign goods withdrawn for export from bonded customs warehouses.
Imports
All goods which have crossed Canada's territorial boundary, whether for immediate consumption in Canada or stored in bonded customs warehouses.
Trade Balance
Exports minus Imports of goods.
Apparent Domestic Market
Manufacturing Shipments minus Exports plus Imports.
Receipts
Total receipts of companies located in Canada for services sold to clients located abroad.
Payments
Total payments of companies located in Canada for services bought from abroad.
Balance of Payments
Receipts minus Payments for cross-border services.

NOTE: Payments and receipts strictly refer to cross-border services. Where a subsidiary of a Canadian company located abroad either sells or buys a service in its local market, or trades a service with a third country, the transactions are outside the scope of the cross-border figures reported in this document. Such transactions abroad are between foreign resident parties, and are not covered by the Balance of payments data which deal only with transactions between Canadian residents and non-residents. Also, the domestic sales and purchases by Canadian subsidiaries of foreign companies with residents here in Canada are excluded from cross-border measures of trade, being resident-to-resident transactions.

Definitions Specific to Manufacturing Industries

Production Employees
Those employees engaged in processing, assembling, storing, inspection and maintenance.
Administrative and Other Employees
Those employees designated as executive, administrative, clerical/office and sales staff.
Total Employment
Production employment plus administrative and executive employment.
Number of Establishments
Smallest operating unit in a business capable of reporting specified input and output data which are collected and published at the establishment level by the Survey of Manufacturing Technology.
Revenue (total shipments)
This includes both manufacturing shipments and non-manufacturing shipments.
Manufacturing Shipments
Shipments of goods manufactured from the establishment's own materials, except consignment shipments.
Non-Manufacturing Shipments
Include wholesaling of goods, rental of new equipment, construction of buildings for the establishment's own use with its own labour, and the operation of cafeterias, laboratories, etc.
Total Salaries and Wages
Production Salaries and Wages plus Administrative and Executive Salaries and Wages.
Production Salaries & Wages
Gross amount paid to production employees, including overtime, bonus and commissions, but before deductions for income tax and employee benefits.
Administrative and Other Salaries & Wages
Gross amount paid to executive, administrative, clerical and sales staff, including overtime, bonuses and commissions, but before deductions for income tax and employee benefits.
Cost of Fuel and Electricity
Cost of fuel purchased for use in production and transportation and cost of electricity consumed for energy purposes, both in manufacturing and non-manufacturing operations.
Cost of Materials and Supplies Used
Raw materials, containers and supplies purchased and owned by the establishment and used in its manufacturing operations.
Cost of Goods for Resale and Non-Manufacturing Inputs
Include cost of goods which were sold without a change in the condition (wholesaling), purchased materials and supplies used in new construction produced by own labour force for own use, purchased materials and supplies used in production of any machinery and equipment for own use by own labour force, office supplies purchased and used, and all other purchased materials and supplies used by the establishment.
Manufacturing Value Added
Value of shipments of goods of the establishment's own manufacture plus the net change in inventory of goods in process and finished goods, minus the cost of materials and supplies used, the cost of fuel and electricity, and the cost of goods for resale.
Total Value Added
Value added for manufacturing and non-manufacturing activities.

Definitions Specific to Software and Computer Services Industry

Employees
Any person drawing pay for services rendered or for paid absence and for whom the employer must complete a Canada Customs and Revenue Agency T-4 Supplementary Form. The employee concept includes full-time and part-time employees, as well as working owners, directors, partners and other officers of incorporated businesses.
Self-employed
Includes working owners of incorporated or unincorporated business, farm or professional practice. It also includes self-employed persons who do not have a business (for example, baby-sitters, newspaper carriers) and unpaid family workers (persons who work without pay on a farm or in a business or professional practice owned and operated by another family member living in the same dwelling).
Software Products Development
Software products are produced for multiple sale, license or lease.
Professional Services
These services include corporate EDP consulting, systems and technical consulting, custom software development, contract programming, training and education, facilities management, and other professional services (but exclude provision of access to Internet which is part of other operating revenues under Internet service providers - ISP services).
Data Processing Services
These services include network services (electronic information systems and network applications), shared processing, data entry, and other processing services.

Created: 2002-07-15
Updated: 2004-04-22
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