D.1. Which statistical unit to consider?
15.35. For inward FATS, the statistical units are all the enterprises or establishments and branches that are under foreign control, and for outward FATS, the statistical units are all the enterprises or establishments and branches abroad that are controlled by an institutional unit resident in the compiling economy.
15.36. MSITS 2010 makes no recommendation as to the choice between enterprises or establishments for statistical units and explains that both approaches have strengths and weaknesses (see chapter 6 and MSITS 2010, paras. 4.13 to 4.14). In addition, if the collection takes place at the enterprise level, it is possible that it is also done at the local enterprise group level.[1] There is, therefore, an even greater risk of interpretation of the activities of the local enterprise groups as it will regroup units engaged in multiple activities, making data classification more difficult when it comes to compilation. The statistical unit for FATS will, in fact, depend heavily on the statistical units of the existing national statistical systems if defined, or on the limitations that exist in the data collection system. Because the statistical units can have an important bearing on how the statistics are interpreted, both in isolation and in comparison with other data sets, the compiler should consider this when compiling FATS. In addition, it is good practice to disclose metadata on the statistical units used in collecting FATS in explanatory notes, given that the level of consolidation may affect users’ interpretation of the statistics.
15.37. Compilers should also consider that units may differ between inward and outward FATS. For example, to the extent that for inward FATS, SBS surveys are the basis, the unit for that compilation is likely to be an establishment (recognizing the need for a degree of industry homogeneity within the unit); for outward FATS, the use of FDI surveys as a basis will tend towards an enterprise or local enterprise group as the unit for compilation. The use of different units for inward and outward FATS will make within country comparisons and balances difficult, particularly for business counts. That is why compilers, in the longer term, should identify ways of aligning the statistical units used in both inward and outward FATS.
Next: D.2. Choice of reference period, periodicity of compilation and valuation of monetary variables
[1] It is advisable for enterprises in the host economy that are part of a common enterprise group to be identified, and to see how that consolidation can be addressed.