Concepts and definitions
Residents and non-residents
In this inquiry, residents are economic entities that engage in economic activities in Finland on a permanent basis and that have fixed premises in Finland from where they carry out their activities, e.g. offices or production plants. 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.
In practice, all entities registered in Finland are regarded as resident entities. By way of exception, however, foreign branches of entities registered in Finland are regarded as non-resident. Correspondingly, Finnish branches of entities registered abroad are regarded as resident in Finland.
The Nordic Investment Bank (NIB), the institutions of the European Union and other international organisations are regarded as non-residents and are identified with separate country codes.
The Member States of the European Union and their overseas territories having adopted the common currency euro and the European Central Bank (ECP) and the European Stability Mechanism (ESM).
Data providers are divided into three different roles based on their Classification of Sectors. The form pages are adjusted automatically depending on the role of the data provider.
Role 1: Sectors S11 (non-financial corporations) and S1313 (local government)
Role 2: Sector S1311 (central government)
Role 3: Sectors S125 (other financial intermediaries), S126 (financial auxiliaries) and S127 (captive financial institutions and money lenders)
Securities-based assets and liabilities
Role 1 and 2 data providers also report data on their securities. Data should be given only on intra-group foreign securities-based assets and liabilities.
Securities-based assets are negotiable shares, bonds and money market instruments of which data are given on the form concerning bonds and money market instruments.
Bonds are negotiable debt instruments with an original maturity of more than 12 months. Money market instruments are negotiable debt instruments with an original maturity of no more than 12 months such as commercial papers and certificates of deposit.
Foreign liabilities related to negotiable bonds and money market instruments are reported at market value, which includes interest accrued to the promissory note (at the so-called dirty price).
Data on derivatives contracts are not given for securities-based assets or liabilities, but on a separate Derivatives contracts form.
Enterprise group, parent, subsidiary, associate, branch and fellow enterprise
In this inquiry, an enterprise group refers to a whole comprising two or more economic entities, where one of the economic entities controls directly at least 10 per cent or indirectly over 50 per cent of votes in all other entities within the group.
As a concept, an enterprise group is close to the accounting concept group. An enterprise group covers at least economic entities belonging to the same group, but in some cases it may also include economic entities not belonging to the group as referred to in the company’s accounts.
The intra-group relation is determined based on whether the counterparty is from the data provider's viewpoint:
- A parent enterprise
- A subsidiary, associate or fellow enterprise
- A branch
Assets and liabilities at the start and end of the reporting period
Assets and liabilities related to negotiable bonds and money market instruments at the start and end of the reporting period are reported at market value, which includes interest accrued to the promissory note (at the so-called dirty price). Assets and liabilities related to all other debt instruments are reported without accrued unpaid interest.
The stock and change data of assets and liabilities are related as follows: assets or liabilities at the start of the reporting period + net change + exchange rate changes + other valuation changes = assets or liabilities at the end of the reporting period.
In the first reporting time, data are also given on the opening stocks of assets and liabilities.
Net change refers to purchases/sales or drawings/redemptions made during the reporting period. Transactions should be valued at purchase or sale price on the transaction day. Non-euro transactions are converted into euro using the ECB’s mean exchange rate quoted on the transaction day.
Exchange rate changes
Enter here data on valuation changes in assets and liabilities due to exchange rate changes during the reporting period. An exchange rate change is positive when assets or liabilities increase and negative when they decrease.
Other valuation change
Other valuation changes refer to changes that may have occurred in the value of assets or liabilities during the reporting quarter for reasons other than purchases, sales, redemptions or exchange rate changes. Other valuation change need not be filled in the form (except on the Interests form page), but it is calculated automatically to the form from the other reported variables. Their size should be followed actively because they are usually close to zero and large other valuation changes can be interpreted as classification changes, for example. A classification change refers to a situation where the enterprise group breakdown of an item moves during the quarter as a result of an acquisition from non-group into intra-group. Classification changes should always be mentioned under Additional information.
Assets and liabilities with original maturities of more than 12 months are classified as long-term assets and liabilities. Assets and liabilities without fixed maturity are also classified as long-term.
Listed and unlisted limited company and other 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 other than listed and unlisted limited companies. Other forms of incorporation include, e.g. the reporting 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.
Countries of counterparties
The country of counterparty is the immediate debtor’s or creditor’s country of location. In most items, Finland is also included in the list of counterparty countries. As regards bonds, money market instruments and shares, the debtor is the issuer of the security and the creditor is the holder of the security.
In addition to individual countries, the list includes some international organisations: the European Central Bank (ECB), the European Investment Bank (EIB), European Union institutions, the Nordic Investment Bank (NIB) and other international organisations.
If the asset or liability counterparty country changes as a result of business activities, information on the change is given under Other valuation changes. The change should be mentioned under Additional information.
Standardised derivative instruments carried out at derivative exchanges are reported based on the country of location of the exchange and non-standardised derivative instruments are reported based on the country of location of the counterparty.