Table 10.4
The ten step calculation for investment in non-farm inventories and inventory valuation adjustment

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A. The 6 steps for calculating investment in non-farm inventories
1. CBVe Reported current dollar book values of inventories at the end of the period.
2. DEFe Deflator of book values at the end of the period.
3. KBVe = CBVe ÷ DEFe Constant dollar book values of inventories at the end of the period.
4. KVPCt = KBVe - KBVe-1 Constant dollar value of physical change for period t.
5. REVt Revaluer of the value of physical change for period t.
6. VPCt = KVPCt × REVt Current dollar value of physical change for period t.
B. The 2 steps for the calculating inventory valuation adjustment
7. ΔCBVt = CBVe - CBVe-1 Change in reported closing book value of inventories in current dollar for period t.
8. IVAt = VPCt - ΔCBVt Inventory valuation adjustment in current dollar for period t.
C. The 2 steps for the calculating volume estimates of investment in inventories using the Chain-Fisher method
9. RBVe = KBVe × REVt Value of inventories at the end of the period, in current dollars, estimated at average prices of the period.
10. RBVb = RBVe - VPCt Value of inventories at the beginning of the period, in current dollars, estimated at average prices of the period.

Source: Guide to the Income and Expenditure Accounts, Statistics Canada, catalogue no.13-017-X