Overview of questionnaire changes
Gill Sanderson,
Neil Bannister,
& Ciara Williams-Fletcher
Overview
Introduction
Testing
Conceptual Changes
Section by section changes
SEFT Questionnaire
INTRODUCTION &
CONCEPTUAL CHANGES
Overview of changes
• Number of
new questions
7
• Number of
amended
questions
22
• Total number
of questions
current
questionnaire
45
•Number of
questions with
no change
19
• Total number
of questions
on new
questionnaire
48
The testing process to date
Scope
requirements
First wave of
testing
SEFT
Second wave
of testing
• Requirements scoped from both the BPM6 and ESA10 manuals
• August – October 2011
• January 2012 first wave of cognitive testing started
• Redesign of the SEFT Questionnaire to make it more user
friendly and ensure it contains the changes to the paper
questionnaire.
• April 2012 second wave of testing started
Testing going forward
Respondent
feedback
• Seminar with respondents in June
Third wave of
testing ?
• Assess the need for a Wave 3
• August 2012?
Finalise the
questionnaire
• Finalise the questionnaire
• October 2012
Questionnaire
goes live!
• Questionnaire will go live in April 2013 for both
the quarterly and annual data collection
Conceptual changes
Voting power
Affiliate
Fellow Enterprise
Debt
Voting Power
FROM voting share capital
TO voting power
BPM6 states the change as:
Voting capital is obtained through the purchase of
equity in a company, however it is possible to have
voting rights which are not proportional to the equity
ownership (i.e. golden shares). The term voting
power encompasses this additional voting right.
Impact?
A change in the terminology throughout the form.
Affiliate
The current questionnaires uses the term subsidiary and associate interchangeably
throughout the form. For clarity we have removed the term subsidiary and
associates from the questionnaire and use the umbrella term ‘affiliate’.
For reference:
• subsidiaries (where the investor holds more than 50% of the voting power)
• and associates (where the investor holds between 10%-50% of the voting
power)
From a Inwards viewpoint:
An immediate foreign affiliate company is the first foreign company where your
company holds at least 10% of the voting power.
This is outlined at the beginning of section B (Page 4 on Inwards & Outwards)
‘
Fellow Enterprises: Inward
Parent (A)
Abroad
100%
UK
40%
Subsidiary (B)
Loan
Abroad
Subsidiary (C)
• Where parent is foreign, loans between UK
enterprise B and foreign enterprise C are
regarded as inward direct investment
Fellow Enterprise (Sister Company)
• The requirements are an extension on the previous legislation
which required the inclusion of Fellow Enterprises on the 2010
questionnaire
• Not asked on the outwards questionnaire because it is deemed
no longer relevant due to the chain of ownership.
• The new requirements necessitate that Fellow Enterprises are
treated the same as an affiliate.
• There is no Fellow Enterprise specific routing on the new
questionnaire.
Debt
• The current term Loan Capital has been
replaced on the new questionnaire with the
term debt.
• It was deemed that ‘loan capital’ was an out
or date term and not well understood. While
the term debt is more up to date.
• This change has been made throughout the
new questionnaire
SECTION B –
BUSINESS STRUCTURE
Page 4 of the questionnaire
Section B – Definition page
SECTION C –
IMMEDIATE FOREIGN PARENT
COMPANY, HEAD OFFICE OR
FELLOW ENTERPRISE DETAILS
Page 6 of the questionnaire
Section C – New question 11
New question (only on the inwards questionnaire)
Reason:
• allows ONS to indentify if the foreign entity is a fellow enterprise.
Section C – Amended question 15 on inwards and
question Q12 on outwards
Current (question 11 inwards - question 13 outwards)
Amended
Reason:
This is an example of a number of conceptual changes
1) voting power
2) affiliate
Section C - New question 16 inwards and question
17 outwards
Replaces the questions 16– 18 on the current Questionnaire, and questions 18-20
on outwards
Removed the 3 routing variables and now just route Branches no need for the old fellow
enterprise question as they are treated the same as an affiliate.
SECTION D –
EARNINGS AND DIVIDENDS
Page 7 – Inwards
Page 8 - Outwards
Section D - Amended Question 17
inwards and 18 outwards
Addition of the ‘or’ so can provide either a profit or a loss
Current Q19 Inwards, 21 Outwards
Amended question
Withholding Taxes, Tax Credits and Tax Refunds have been kept on the
form
Section D – Amended question 22 on Inwards, 23
Outwards
Current
question
Amended
questions
Section D – Routing question moved
•Section D is now followed by Quoted Equity Capital
Transaction and Balances Sheet Section. Therefore
we have moved the quoted and unquoted question to
the end of section D.
•Question 23 inwards and 24 outwards
SECTION E –
QUOTED EQUITY CAPITAL
TRANSACTION AND BALANCES
SHEET
Page 8 inwards
Page 9 outwards
Section E – Market Value Opening and Closing
Balances
New questions 25, 29 inwards and 26 & 30 outwards.
Reason :
Market value is the preferred conceptual basis to measure both direct
investment positions and transactions where equity is listed on a stock
exchange
Section E – Question 27 inwards and 28 outwards
•Gains and losses changes to increase and decrease as an update in
the terminology
• Addition of the ‘or’ to ensure provision of either a increase or a
decrease for the affiliate and it’s consolidated group.
Current question (31 Inwards)
Amended question
Section E – Question validation
Amended question 28 inwards, 29 outwards.
Addition of calculation to assist in answering the
question and validating the response to associated
questions on the questionnaire
SECTION G –
PREFERENCE SHARES AND DEBT
ATTRIBUTABLE TO THE IMMEDIATE
FOREIGN PARENT COMPANY
Page 13 inwards
Page 14 outwards
Section G – Question 36 on inwards and 37
outwards
• Change loan capital to debt
• Addition of the term ‘or’ so either an increase or decrease in debt
is provided for the consolidated group
Current question
26 inwards 28 outwards
Amended question
Section G – Question 37 inwards 38 outwards
•Addition of the term debt, replacing loan capital
•Inclusion of validation formula
Current
question
Amended
questions
SECTION H –
BALANCE SHEET, INTERCOMPANY
LOANS AND ACCRUED INTEREST
Page 15 Inwards
Page 16 Outwards
Section H – Question 39/40 inwards, 40/41 outwards
Insurance technical reserves (also referred to as insurance technical provisions)
are provisions made by insurance companies for:
• prepayments of premiums (i.e. premiums received but not yet earned)
• claims incurred but not yet paid
• claims reported but not yet resolved
• estimates of claims incurred but not yet reported
• future benefits payable to holders of life insurance and with-profits endowment
policies.
SECTION I –
BRANCH EARNINGS, ASSETS AND
LIABILITIES
Page 16 inwards
Page 17 outwards
Branch Definition
Current Definition
New Working Definition
For the purpose of the FDI a
branch is:
• a permanent establishment as
defined for taxation proposes.
• It has no separate capital
structure and
• its accounts form part of those
of the Head Office.
For the purpose of the FDI a
branch is:
• A permanent establishment but
not a separate legal entity
• Has the provision to provided
either a complete set of
accounts or the possibility of
compiling a meaningful, from
both a economic and legal
viewpoint, set of accounts.
Branch Definition
UK
Economy
Head
Office
Flows
Economy
2
Branch
Section I – Question 41 inwards, 44
outwards
Current question
Amended
questions
Section I – New questions on remittances
Question 42 inwards, 43 outwards
Reason :
ONS needs to be able to calculate branch reinvested earnings. This can be
done by subtracting the remittance from the profit/ loss figures in the previous
question.
Section I – New questions on branch assets and
liabilities
Question 43 & 46 inwards, 44 & 45 outwards
The Reason:
The regulations now require branch data to be collected under an asset and
liabilities principle.
Section I – Simplification of branch current account
questions
Amended questions
Current Questions
45 & 46 inwards
46 & 47 outwards
SEFT QUESTIONNAIRE
SEFT Overview
• Currently in the process of being redeveloped
• Second wave of internal testing of the
spreadsheet
• Testing with randomly selected companies
SEFT Changes
Same order as the paper
questionnaire
Reduced number of tabs
– streamlined.
Validation prevents
answering of later
questions until
correct data is
included.
Compacted the
structure to remove
gaps between
questions – easier to
program.
Hoverable help
function over each
question
Added more useful
instructions and
informative error
messages.
SEFT questionnaire