Frequently Asked Questions
Guidelines for Citing BEA Information | ID: 61 | Created: Dec-05-2005
Losses of and non-repairable damages to the stock of fixed assets (structures, equipment and software) associated with a disaster do not affect CFC. CFC reflects the decline in the value of the stock of fixed assets due to wear and tear, normal obsolescence, normal accidental damage, and aging. In the event of a disaster, losses to the stock of fixed assets are not considered "normal" and therefore should not be included in CFC as a charge against income earned from current production. Instead, disaster losses are included in "other changes in volume of assets," which are published annually in NIPA Table 5.10 and in Fixed Assets Accounts Tables 1.7 and 1.8. Additionally, estimates for disaster losses are published annually and quarterly as addenda items in NIPA table 5.1.
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