Direct investment enterprise/other enterprise classification
4.32. This classification is used in ABS BOP and IIP statistics and is based on standards set out in the BPM5. The classification subdivides resident incorporated and unincorporated enterprises into direct investment enterprises and other enterprises. The classification enables measurement of flows of foreign direct investment into Australia and measurement of the stock of foreign direct investment in Australian resident enterprises. A direct investment enterprise is defined in Australia's BOP and IIP statistics as an incorporated or unincorporated enterprise resident in Australia in which an investor (referred to as a direct investor), who is resident in another economy, owns 10% or more of the ordinary shares or voting power (for an incorporated enterprise) or the equivalent (for an unincorporated enterprise).
4.33. Direct investment enterprises include:
- subsidiaries (a non-resident investor owns more than 50% of the company): sub-subsidiaries are also direct investment enterprises
- associate companies (a non-resident investor and its subsidiaries owns from 10 to 50%): subsidiaries of associate companies are also associates
- branches (permanent establishments of non-resident companies or other non-resident investors).
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