Appendix C The Canadian System of National Accounts and Culture Satellite Account

The Canadian System of National Accounts (CSNA) is compiled according to an internationally recognized economic accounting standard (2008 SNA). It provides a set of interrelated accounts and a set of concepts, definitions, classifications and accounting rules for compiling and integrating economic data to give a comprehensive picture of the economy and how it works. The CSNA can be used to analyze the production and the use of goods and services by industry, the income generated in production, and the demand for goods and services from households and governments and non-profit institutions serving households. The Culture Satellite Account (CSA) is an extension of the CSNA which focuses on the economic transactions specifically related to culture and sport.

Satellite accounts, such as the CSA, have the structure and principles of the national accounts but are developed as an extension to the core national accounts system – hence the name "satellite". Since culture or sport are not clearly defined as a “formal” industry within the Canadian economy, it is necessary to identify and extract all the culture or sport content from within the economy and present it in a coherent form—a satellite account. This satellite account provides a framework (i.e., identifies culture/sport industries and products), concepts and definitions which inform us about culture and sport in Canada.

The satellite account presentation adheres to national accounting principles and allows an analyst to compare areas of interest (culture, tourism, etc.) with the entire economy. With the CSA, given its focus on culture and sport, one can answer questions like: What is the economic importance of culture and sport in Canada? The ability to measure culture against the rest of the economy is a very important reason for working within the structure of the CSNA.

The CSA is essentially a detailed rendition of the culture and sport portion of the CSNA for which the CFCS provides the concepts, definitions and classification used to filter economic activity related to culture and sports. The relationship between the CSA, CFCS and CSNA is described in Figure C1 below.

Figure C1 Relationship between Canadian Culture Satellite Account, 2011 Canadian Framework for Culture Statistics and Canadian System of National Accounts

Description of Figure C1

Figure C 2 below shows schematically the conceptual framework of the CSA. At the top left is the CSNA with the Input-Output (I-O) Accounts highlighted and explained below. It is within the I-O Accounts that the I-O tables are constructed using surveys, tax, customs and other administrative records. These source data are processed to be consistent with the definition and accounting rules used in the CSNA. On the top right is the CSA source data originating from the various industry surveys and other administrative source and discussed below. Data from both these sources are incorporated into the CSA.

Figure C2: Canadian System of National Accounts and the Canadian Culture Satellite Account

Description of Figure C2

Input-Output tables

The Input-Output (I-O) tables contain the most comprehensive and detailed statistics relating to production, intermediate use and final consumption of goods and services in the Canadian economy. They measure economic activity by industry as well as by product. They are the primary building block of the CSA.

As their name suggests, I-O tables contain two important dimensions: the output table and the input table. The output table shows the goods and services produced by each industry in the Canadian economy. In most cases, domestic production or output of an industry is simply its sales or shipments adjusted for changes in inventories, measured at basic prices. Estimates of the supply (output) of culture products in the CSA originate in the output table.

The input table shows the goods and services used by each industry in the production of their goods and services. This table also shows the costs of “primary inputs” using in production, including labour income, income of unincorporated businesses, other operating surplus and net indirect taxes (often referred to as the payments to labour, capital and appropriations by government).

From these tables it is possible to derive a measure of value added or gross domestic product by taking the output of an industry and subtracting the intermediate inputs used in the production of that output. The estimates of Culture GDP and GDP by culture industries (as well as Sport GDP and GDP by sport industries) are based on the data reported in these tables.

The I-O classification for industries, Input Output Industry Classification (IOIC), is a variant of the North American Industry Classification System (NAICS) 2007. The I-O classification for commodities is a variant of the North American Products Classification System (NAPCS) 2007. At the most detailed level, the I-O tables are composed of 481 commodities (including 71 that are defined as ‘culture products’ in the CSA) and 234 industries (45 of which are identified as ‘culture industries’).^{Note 1} These 45 I-O culture industries disaggregate into 152 six-digit NAICS 2007 culture industries.

Industry surveys and other information

In addition to the Input-Output tables the following information is used to construct the CSA. This includes several surveys covering: amusement and recreation; book publishers, film and video distribution; film, television and video post-production; film, television and video production; motion picture theatres; newspaper publishers; performing arts; heritage institutions; and periodical publishing.^{Note 2} They produce biennial estimates for selected financial variables and industry characteristics. Other surveys such as retail trade, wholesale trade and manufacturing, as well as available tax data were also used to build the CSA.

For education, annual enrollment (headcount) data from the Postsecondary Student Information System was used in order to distinguish culture education programs or education programs related to sport from the other programs. As this source of information is available annually, it is more up to date than the Census of Population and National Household Survey. These data were classified according to a detailed classification system: the Classification of Instructional Programs (CIP). CIP allowed for the selection of enrollments for specific culture programs (or fields of study) and specific sport programs according to pre-established codes. A sub-set of pre-established education codes had been determined in the CFCS 2011.

For government support, government expenditures from the Survey of Federal Government Expenditures on Culture, and Survey of Provincial/Territorial Government Expenditures on Culture were used. This information was used to estimate the culture and sport portion of the CSNA government industries.^{Note 3}

Employment data (i.e., number of jobs) used in the CSA comes from the Canadian Productivity Accounts of the CSNA. These accounts provide information on employment following CSNA principles and using I-O industries. At the aggregate level, the number of jobs in this database is benchmarked to the Labour Force Survey (LFS). The industry distribution of these jobs, however, is primarily based on information from the Survey of Employment, Payrolls and Hours, although other industry surveys and administrative sources are used as well.

For a complete list of survey data used in the CSA see Appendix K.

Notes