1993 SNA Update Information - AEG recommendations for issue:
Treatment of multi-territory enterprises | | Subissue description | | Issue description in [English] | [French] | [Russian] | [Spanish] | | The 1993 SNA follows the Balance of Payments Manual in allowing for a single enterprise run as a
seamless entity with substantial operations in two or more economic territories to be regarded as having
a centre of economic interest in each of the countries where it is recognized by the tax and licensing
authorities, but only when the activity is operating mobile equipment such as ships, aircraft and
railways. In these cases, the possibility is for all the enterprise’s transactions to be allocated to the
countries of registry in proportion to the financial capital that the countries have contributed or their
share of equity in the enterprise. Should this treatment be extended to other activities, for example
hydro-electric schemes on border rivers and pipelines? Should reference be made to joint sovereignty
zones and zones of joint jurisdiction? |
|
| | AEG recommendations | | Number of AEG recommendations for selected issue: | 1 | | Corresponding meeting | Date posted | Recommendation |  | | July 2005 | 9/12/2005 | The AEG accepted the recommendation of the prorating of multi-territory enterprises and enterprises in joint sovereignty and joint jurisdiction zones, but did not make suggestions on additional possible criteria. | | December 2004 | 1/11/2005 | The treatment of multi-territory enterprises in BPM5 should be extended to all kinds of activities, when formal separation is not possible.
Units operating in zones of joint sovereignty or jurisdiction should be split between these in ways that still need to be specified.
The broader question of multinational enterprises should be addressed by a task force, taking account of IASB recommendations and work in hand for the next ISI meeting.
|
|
|
|
| |
|
