The target population for outward FATS comprises all foreign-based affiliates that are controlled by an institutional unit resident in the compiling country. The units that complete the CSO Outward FATS survey are resident institutional units i.e., Irish multinationals. The Outward FATS survey requires the CSO to survey domestic-based Irish multinationals and request information about their foreign-based affiliates.
The CSO carry out a survey to capture the outward FATS information. On the survey form respondents are required to complete a list of foreign affiliates that are under the control of the Irish multinational.
The required variables for each foreign affiliate are as follows:
1. Institutional unit
An institutional unit is an elementary economic decision-making centre characterised by uniformity of behaviour and decision-making autonomy in the exercise of its principal function. A unit is regarded as constituting an institutional unit if it has decision-making autonomy in respect of its principal function and keeps a complete set of accounts.
2. Foreign Affiliate
A foreign affiliate is enterprise not resident in the compiling country over which an institutional unit resident in the compiling country has control (Outward FATS).
3. Control
The concept of control is used for the breakdown of the FATS variables. Control means the ability to determine the general policy of an enterprise by choosing appropriate directors, if necessary. In this context, enterprise A is deemed to be controlled by an institutional unit B when B controls, whether directly or indirectly, more than half of the shareholders’ voting power or more than half of the shares.
Indirect control means that an institutional unit may have control through another affiliate which has control over enterprise A.
Therefore, control implies the ability to determine the strategy of an enterprise, to guide its activities and to appoint a majority of directors. In most cases, this ability can be exercised by a single investor holding a majority (more than 50 %) of the voting power or of the shares, directly or indirectly.
4. Ultimate controlling institution (UCI)
The ultimate controlling institution (UCI) of a foreign affiliate is an institutional unit, proceeding up a foreign affiliate’s chain of control, which is not controlled by another institutional unit. FATS data are compiled according to the UCI concept. The crucial characteristic of a UCI is that it should effectively control and manage the group, i.e. take global strategic decisions.
Therefore, in the case of Ireland, Outward FATS describes the activities of affiliates abroad where the UCI is an Irish resident institutional unit.
5. Residency
The place of residency of an UCI is the country of registration of the UCI in the case of legal entities and the country of residence in the case of natural persons acting as UCI. Residency is often but not always the nationality of the UCI.
The Outward FATS variables are broken down by the resident country of the foreign affiliates. These countries have been amalgamated into geographical aggregates which are listed separately.
Geographical Breakdown OFATS 2021 (DOC 38KB)
Activity Breakdown
The NACE Rev. 2 sectors covered by the Outward FATS data are as follows:
A - Agriculture, forestry and fishing
B - Mining and quarrying
C - Manufacturing
D - Electricity, gas, steam and air conditioning supply
E - Water supply; sewerage, waste management and remediation activities
F - Construction
G - Wholesale and retail trade; repair of motor vehicles and motorcycles
H - Transportation and storage
I - Accommodation and food service activities
J - Information and communication
K - Financial and insurance activities
L - Real estate activities
M - Professional, scientific and technical activities
N - Administrative and support service activities
P - Education
Q - Human health and social work activities
R - Arts, entertainment and recreation
S - Other service activities
Please click the following link to access details of the methodology used:
Compiling Foreign Affiliates Statistics OFATS 2021 (PDF 194KB)
