Manual on Statistics of International Trade in Services

H. Summary of recommendations 
4.76. The main recommendations of the present 
chapter on the compiling of FATS statistics may be 
summarized as follows: 
(a) FATS statistics should cover those affiliates 
in which the direct investor (or an associated group of 
investors acting in concert) holds a majority of the 
ordinary shares or voting power. However, countries 
are encouraged to provide supplemental statistics, 
covering cases in which foreign control may be 
deemed to be present, even though no single foreign 
direct investor holds a majority stake; 
(b) FATS variables should be compiled for all 
foreign affiliates, not only those affiliates in services.
However, the activity classification to be used for 
reporting to international organizations provides more 
detail for services than for goods; 
(c) For statistics on foreign-owned affiliates in 
the compiling economy (inward FATS), the first 
priority for geographical attribution should be the 
country of ultimate beneficial owner. However, to 
facilitate linkages with FDI data, countries are also 
encouraged to provide some data in which attribution 
is based on the country of the first foreign parent.
Statistics for foreign affiliates of the compiling 
economy (outward FATS) should be attributed based 
on the country of location of the affiliate whose 
operations are being described; 
(d) Because it is the basis required for some 
variables as well as the basis on which data probably 
are, at present, most widely available, an activity 
basis is recommended as the initial priority for FATS 
statistics. However, data on a product basis is 
recognized as a longer-term goal, and countries are 
encouraged to work toward providing product detail 
for those variables that lend themselves to this basis 
of attribution (namely, sales (turnover) and/or output, 
exports and imports); 
(e) For reporting to international organizations, 
FATS variables should be disaggregated according to 
the ISIC Categories for Foreign Affiliates (see table 
3). Any product detail that is developed should be 
disaggregated on a basis compatible with EBOPS (see 
table 2); 

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(f) The 
Manual
recommends that the FATS 
variables to be collected include at least the following 
basic measures of foreign affiliate activity: 
(i) 
Sales (turnover) and/or output; 
(ii) Employment; 
(iii) Value 
added; 
(iv) Exports and imports of goods and 
services; 
(v) Number of enterprises. 
Additional measures are suggested for countries 
wishing to expand FATS data collection beyond this 
basic set; 
(g) The 
Manual
envisages that a variety of sources 
and methods may be used to collect and compile FATS 
statistics. Separate surveys may be conducted or links 
may be made with domestic enterprise statistics that are 
already collected. In either case, there are likely to be 
links with existing data on foreign direct investment. 

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