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Concepts and definitions

Foreign financial assets and liabilities

In this survey, foreign financial assets denote Finnish residents’ assets vis-à-vis non-residents. Foreign financial liabilities are Finnish residents’ liabilities vis-à-vis non-residents.

Residents and non-residents

Economic units resident in Finland refer to economic units whose economic activity is permanently concentrated in Finland and which have in Finland a facility, such as an establishment or production plant from which they practice the activity. Economic activities are regarded as permanent if they continue for at least a year. Otherwise, activities are regarded as being conducted by non-resident economic entities.

Direct and indirect ownership percentage

The direct ownership percentage describes the entity's ownership share in another entity directly so that there are no other owners between the two entities in the chain of ownership. The indirect ownership percentage describes the entity's ownership share in another entity when the ownership share of another entity is not direct, but the chain of ownership goes through other entities. The ownership share may differ from the voting share.

Enterprise group

In the data collection, an enterprise group refers to a whole comprising two or more economic entities, where one of the economic units controls directly at least 10 per cent or indirectly, or through other entities, over 50 per cent of votes in all other entities within the group.

As a concept, enterprise group is close to the accounting concept group. An enterprise group always covers at least all economic units belonging to the same group. In some cases, an enterprise group can also include a larger group of economic units than this if the conditions mentioned above are met.

A natural person can also be an economic unit belonging to an entity under the reporting obligation if this controls directly at least 10 per cent or indirectly over 50 per cent of votes in the entity under the reporting obligation.

Within the enterprise group, Finnish entity  under the reporting obligation may have a relation with:

A foreign parent enterprise, i.e. a non-resident economic unit holding directly a share of at least 10 per cent or indirectly over 50 per cent of votes in the Finnish entity under the reporting obligation.

A foreign subsidiary, associate or branch, i.e. a non-resident economic entity 10 per cent of whose voting rights are held directly, or 50 per cent indirectly, by the Finnish reporting entity.

A foreign fellow enterprise, i.e. a non-resident economic entity belonging to the same enterprise group with the Finnish reporting entity, which is not a parent enterprise, subsidiary or branch of the Finnish entity under the reporting obligation. Economic entities in fellow enterprise relations are combined by a common parent enterprise, which does not, however, own entities in fellow enterprise relations through the same chain of ownership.

Foreign parent enterprise

In the data collection, a foreign parent enterprise refers to an economic unit registered abroad holding directly at least 10 per cent or indirectly (or through other entities) over 50 per cent of votes in the Finnish entity under the reporting obligation.

Foreign subsidiary, associate and branch

In the data collection, a foreign subsidiary, associate and branch refer to a non-resident economic unit, where the Finnish reporting entity controls directly at least 10 per cent or indirectly over 50 per cent of votes.

Foreign fellow enterprise

In the data collection, a foreign fellow enterprise refers to a non-resident entity belonging to the same enterprise group with the Finnish entity under the reporting obligation, which is not a parent enterprise, subsidiary, associate or branch of the reporting Finnish entity. A fellow enterprise is combined by a common parent enterprise, which does not, however, own the fellow enterprises through the same chain of ownership.

Form of incorporation

Listed limited companies are companies whose shares are equity securities quoted in secondary markets and whose shareholders are liable for the debts and other commitments of the company only to the extent of the capital they have invested in the company’s shares.

Unlisted limited companies are companies whose shares are equity securities not quoted in secondary markets and whose shareholders are liable for the debts and other commitments of the company only to the extent of the capital they have invested in the company’s shares.

Other forms of incorporation constitute others than listed and unlisted limited companies. Other forms of incorporation include, e.g. the entity’s branches located in other countries and companies whose shares are not transferrable and whose shareholders are liable for the company's debt and other commitments with their entire assets.