Transcript PPT
Institutional sub-sectors and the delineation of head offices, holding companies and special purpose entities Item 5.2 of the agenda 9th Meeting of the AEG Washington, 8-10 September 2014 Eurostat C1 Eurostat Delineation of Head offices and holding companies • New issue of 2008 SNA :Distinction between head offices and holding companies. • Implementation problems • OECD/ECB/Eurostat Task Force • Consultation of the AEG – 8th meeting in Luxembourg • Draft note for SNA News and Notes Eurostat 8th AEG meeting: Conclusions on head offices and holding companies • Standard SNA criteria for an institutional unit should always be applied. • Non-residents are always to be considered as institutional units; no “downstream consolidation” of a holding with its subsidiary/-ies. • “no employees and no compensation of employees” is not a sufficient criterion to determine the lack of institutional independence • Having multiple parents/shareholders is a sufficient qualification for a unit to be considered an institutional unit. Eurostat 8th AEG meeting: Conclusions on head offices and holding companies • Head offices are always to be considered as separate institutional units. • Having at least 50% of its assets consisting of equity vis-à-vis its subsidiaries can be considered as a practical indicator for identifying entities as being either HOs or HCs. • In general, employment of three or more persons could be considered as a first indicator for a unit being a head office. Eurostat Next steps • Work on SPEs, in particular on the treatment of IPPs is ongoing Another SNA News and Notes on SPEs Please comment on the draft note on holding companies and head offices. Thank you for your kind attention Eurostat