Country of control of enterprise (financial statistics)

Definition

Country of control refers to the country of residence of the ultimate foreign controlling parent corporation, family, trust, estate or related group. Each subsidiary within the global enterprise is assigned the same country of control as its parent. A company whose voting rights are equally owned by Canadian-controlled and foreign-controlled corporations, is Canadian-controlled. If two foreign-controlled corporations jointly own an equal amount of the voting rights of a Canadian resident company, the country of control is assigned according to an order of precedence based on their aggregate level of foreign control in Canada. For example, United States takes precedence over all other foreign countries because it has the highest level of aggregate foreign control in Canada.

Enterprise (financial statistics) refers to the organizational unit of a business that directs and controls the allocation of resources relating to its domestic operations, and for which consolidated financial and balance sheet accounts are maintained from which international transactions, an international investment position and a consolidated financial position for the unit can be derived. It corresponds to the institutional unit as defined for the System of National Accounts. For the purpose of financial statistics, enterprises classified under the North American Industry Classification System (NAICS) to Management of Companies and Enterprises (NAICS 55) are excluded to avoid double counting of assets. These enterprises are typically holding companies whose most significant assets are investments in affiliated enterprises. As well, enterprises classified under NAICS 526 (Funds and other financial vehicles) are excluded.

Classifications

Relation to previous version

  • Country of control of enterprise (financial statistics) May 11, 2016 to current

    This is the current version.

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