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pdfBE-577 (Rev. 2/2010)
OMB No. 0608-0004: Approval Expires 02/29/2012
QUARTERLY SURVEY OF U.S. DIRECT INVESTMENT ABROAD
Affiliate ID
Direct Transactions Of U.S. Reporter with Foreign Affiliate
Mandatory and Confidential
1
Electronic filing:
Go to www.bea.gov/efile for details
Mail reports to:
U.S. Department of Commerce
Bureau of Economic Analysis, BE-69(Q)
Washington, DC 20230
What is the date range and year that the foreign affiliate’s quarter
ends for this report?
2 0
2/16-5/15
2
Deliver reports to: U.S. Department of Commerce
Bureau of Economic Analysis, BE-69(Q)
Shipping and Receiving Section M-100
1441 L Street, NW
Washington, DC 20005
Fax reports to:
(202) 606-5305
Assistance:
Email
Telephone
Copies of form
[email protected]
(202) 606-5557
www.bea.gov
004
5/16-8/15
8/16-11/15
11/16-2/15
Year
Name of U.S. Reporter
U.S. Reporter mailing address
3
Name of foreign affiliate being reported – Use the same name on all
reports filed subsequently for this affiliate with the Bureau of Economic
Analysis, e.g., Form BE-11.
Definitions: Underlined terms are defined on page 9.
Due date: 30 days after the close of each calendar or fiscal quarter end; 45 days if the report is for the final quarter of the financial reporting year.
Who must report: A Form BE-577 is required from every U.S. person that had direct transactions or positions with a foreign business enterprise in
which it had a direct and/or indirect ownership interest of at least 10 percent of the voting stock if an incorporated business enterprise or an
equivalent interest if an unincorporated business enterprise at any time during the reporting period. Reports are required even though a foreign
affiliate may have been established, acquired, seized, liquidated, expropriated, sold, or inactivated during the reporting period.
Basic requirement: A Form BE-577 must be filed for each directly-owned foreign affiliate for which total assets; sales or gross operating revenues,
excluding sales taxes; or net income after provision for foreign income taxes was greater than $60 million (positive or negative) at any time during
the affiliate’s fiscal reporting year. An indirectly-owned foreign affiliate must be reported if the basic requirement is met and an intercompany debt
balance with the U.S. Reporter exceeds $1 million. If you don’t meet the reporting requirements complete
.
Coverage: All transactions or positions with the foreign affiliate by all U.S. domestic subsidiaries, divisions, etc., which constitute the U.S. Reporter,
as defined, must be combined on one Form BE-577.
Monetary values: Report in thousands of U.S. dollars. If an amount is between positive and negative $500, enter “0.” Use parentheses to indicate
negative numbers.
Estimates: In order to supply a timely report, if actual amounts are not available, supply your best estimates and label them as such.
4
Is this report a resubmission of a past report?
Yes - File revisions to any prior period data either by letter if the revisions are minimal, by noting changes on a file
copy of the previously completed form, or by completing a revised form in its entirety and refiling it.
No
5
Country of location (country where affiliate’s physical
assets are located or primary activity is carried out) – 005
may differ from country of incorporation……………………….….
6
Is the foreign affiliate incorporated in the country of location indicated in
?
Yes
7
No
If the foreign affiliate’s industry classification, based on the largest source of
sales or gross operating revenues, has changed, or if this is an initial filing,
006
enter the appropriate industry code (refer to the Summary of Industry
Classifications on page X or go to www.bea.gov/naics2007)................................................
Please continue on next page
Corrected
Industry Code
Current
Industry Code
_ _ _ _
_ _ _ _
8
How has the affiliate’s industry reporting status changed during the reported quarter?
Mark (X) one
008
1
1
Affiliate was not previously reported. Complete
1
2
Affiliate was previously reported but became temporarily exempt.
3
Affiliate was merged or reorganized. Attach explanation and specify date of status change…... _
1
Part III
and
Part V
.
2
Month
Day
Year
_/ _ _/ _ _ _ _
2
1
4
Affiliate was sold or seized. Complete
and specify date of status change…………..…. _
Part III
_/ _ _ /_ _ _ _
2
9
and specify date of status change……..………….. _
1
5
Affiliate was liquidated. Complete
1
6
Affiliate fell below exemption level. Complete Certification of Exemption on page 8.
1
7
Affiliate became inactive. Specify date of status change……………………………………………._
1
8
No change during reporting quarter.
Part III
_ /_ _ /_ _ _ _
2
_ /_ _/ _ _ _ _
How many foreign affiliates are consolidated on this report?
• If this report is for a single foreign affiliate, enter “1” in the box below.
• See the Definitions on page 10 for Consolidation Rules.
Number Consolidated…….…
10
Does the U.S. Reporter hold a direct equity interest in the foreign affiliate named in
Yes SKIP to
?
Part I
No
11
If no to
, what is the name and ID number (if available) of the foreign affiliate in this affiliate’s ownership
chain that is directly owned by the U.S. Reporter?
• If the U.S. Reporter directly owns foreign affiliate A,
which, in turn, owns foreign affiliate B, then affiliate A’s ID
(foreign affiliate parent) should be provided in this item.
U.S. Reporter
Foreign affiliate directly owned by the U.S.
Reporter
Affiliate A (foreign affiliate parent)
• For affiliates that are both directly and indirectly owned
by the U.S. Reporter, do not complete this item; for such
affiliates, the amounts reported in
,
, and
must be based on the U.S. Reporter’s direct equity
interest only.
• Amounts reported in
should reflect direct
transactions, irrespective of direct or indirect ownership.
Foreign affiliate identified in
Affiliate B
U.S. Reporter
Foreign affiliate
Foreign affiliate identified in
Affiliate B
Name and ID number of foreign affiliate parent……..
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Form BE-577 (Rev. 2/2010)
Affiliate ID
Instructions for Part I - U.S. Reporter’s Direct Equity Share in the Foreign Affiliate
Report all items on a quarterly basis, NOT on a cumulative or year-to-date basis.
12
A. • Report the amount that represents the U.S. Reporter's equity, based on its directly held equity interest in
the foreign affiliate's net income (loss) for the quarter, before provision for common or preferred dividends
and before any reduction for foreign withholding taxes on dividends, but after provision for other foreign
income taxes.
• If the U.S. Reporter holds both a direct and indirect equity interest, only the share representing the direct
equity interest should be given in this item.
• Do not eliminate intercompany transactions.
• Include, on an equity basis, the foreign affiliate's share in net income of unconsolidated foreign enterprises
owned by it.
• Include remeasurement of the foreign affiliate's foreign-currency-denominated assets and liabilities due to
changes in foreign exchange rates during the reporting period and other gains and losses included in
B.1.
B. • Include in 12B.2, per FASB ASC 220 (FAS 130), unrealized holding gains (losses) for available for-sale
securities (including those classified as current assets), less reclassification adjustments, and pension and
postretirement benefit plans after provision for foreign income taxes.
• For certain and gains (losses) for dealers in financial instruments and finance, insurance, and real estate
companies. See special instructions on page 11.
C. • Report U.S. Report's share of currency translation adjustments resulting from the translation of the foreign
affiliate's financial statements from the affiliate's functional currency into U.S. dollars. Such adjustments
should be computed in accordance with FAS 52 or other currently applicable standards of the Financial
Accounting Standards Board.
D. • Report dividends as of the date they were declared or paid, GROSS of any foreign tax withheld. Any
subsequent settlement of dividends declared but not paid SHOULD NOT be reported a second time, but
should be reflected only as a reduction in
.
Part I – U.S. Reporter’s Direct Equity Share in the Foreign Affiliate
12
What is the U.S. Reporter’s share of:
Current Quarter
For A, B, and C, base data on the books of the foreign affiliate
A. The foreign affiliate’s quarterly net income (loss), after provision for foreign income 101
taxes?………………………………………………………………………………………….....…
Bil.
Mil.
Thou.
Bil.
Mil.
Thou.
$
111
B. Certain gains (losses), after provision for income taxes:
1. Included in net income
A? See Definitions on page 9. …….................................…$
2. Not Included in net income
A but taken directly to other comprehensive
121
income? Do not include foreign currency translation adjustments; report such
amounts in
C.……....................................................................................................…$
131
Dol.
000
Dol.
000
Bil.
Mil.
Thou.
Dol.
000
Bil.
Mil.
Thou.
C. The change in the balance sheet translation adjustment account during the quarter?…….. $
Dol.
000
For D, E, F, and G, base data on the books of the U.S. Reporter
D. Dividends on common and preferred stock (gross of foreign affiliate withholding
141
taxes) excluding stock and liquidating dividends? Report liquidating dividends
in
..................................................................................................................…$
Bil.
Mil.
Thou.
000
Bil.
Mil.
Thou.
E. Earnings distributed by unincorporated foreign affiliates?………………….…………………. $
F.
151
Foreign tax withheld on dividends of incorporated
D or on distributed earnings
E of unincorporated foreign affiliates?………………………………………………………. $
161
G. The net amount of dividends/earnings distributed (
Page 3
D or
E less
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F)?……………. $
Dol.
Dol.
000
Bil.
Mil.
Thou.
Dol.
000
Bil.
Mil.
Thou.
Dol.
000
Form BE-577 (Rev. 2/2010)
Part II – Balances and Interest Between the U.S. Reporter and Foreign Affiliate
13
Is the foreign affiliate a bank (industry code 5221, 5229), securities broker dealer (5231), or in the finance
industry (industry codes 5223, 5224, 5238, and 5252)?
• Note: A “bank” is a business entity engaged in deposit banking or closely related functions, including
commercial banks, Edge Act corporations, savings and loans, savings banks, bank holding companies and
financial holding companies under the Gramm-Leach-Bliley Act.
Yes
No – SKIP to
14
Is the U.S. Reporter named in
a bank (5221, 5229) or securities broker dealer (5231)?
Yes
No – SKIP to
15
Does the U.S. Reporter named in
have domestic subsidiaries or business segments that conduct
insurance, real estate, or leasing activities?
Yes - Complete
and
but ONLY report the balances and interest between this foreign affiliate and the
business segments of the U.S. Reporter that conduct insurance, real estate, or leasing activities.
EXCLUDE amounts associated with the banking and finance segments of the U.S. Reporter.
No – SKIP to
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Form BE-577 (Rev. 2/2010)
Affiliate ID
Part II – Balances and Interest Between the U.S. Reporter and Foreign Affiliate
(Continued)
Balances
16
What were the debt and other intercompany balances between the U.S. Reporter and the foreign affiliate?
• Base data on the books of the U.S. Reporter.
• Include current and long-term items, indebtedness resulting from a capital lease, and the net book value of equipment
under a long- term operating lease.
- If leases between the U.S. Reporter and the foreign affiliate are capitalized, then include the outstanding capitalized
value as an intercompany balance. Lease payments should be disaggregated into the amount that are (i) a reduction
in the intercompany balance, to be reported in items A or B, and (ii) interest to be reported in
.
- If leases between the U.S. Reporter and the foreign affiliate are operating leases for more than one year that have not
been capitalized, include the net book value. Lease payments should be disaggregated into (i) the return of capital,
consisting of the depreciation component for long-term operating leases, which should be reflected as a reduction in
one of these items, and (ii) rent or net rent, which is not covered by this survey.
•The current quarter’s opening balance should be equal to the prior quarter’s closing balance; therefore, if it is necessary to
translate the balance into U.S. dollars, use the same exchange rate to translate the opening balance for the current
quarter as was used to translate the closing balance of the prior quarter.
• Derivatives contracts – Exclude the value of outstanding financial derivative contracts or any payments or receipts
resulting from the settlement of these contracts. For example, the settlements of interest rate derivatives should NOT be
reported as interest or as another type of transaction on this form. Derivative contracts are covered by the Treasury
International Capital (TIC) Form D, Report of Holdings of, and Transactions in, Financial Derivatives Contracts.
DO NOT net payables and receivables
(A and B below).
Beginning
of quarter
A. Owed to U.S. Reporter by
221
the foreign affiliate (U.S. Receivables)……………...
Bil.
B. Owed to the foreign affiliate by
231
the U.S. Reporter (U.S. Payables)……………......…
Bil.
Mil.
Thou.
$
End
of quarter
Dol.
000
Mil.
Thou.
$
Dol.
Bil.
222
Mil.
Thou.
000
$
Bil.
232
000
Dol.
Mil.
Thou.
$
Dol.
000
Remarks
Interest
17
What were the interest receipts and payments (gross of withholding tax) between the U.S. Reporter and the
foreign affiliate in
during the quarter?
• Report quarterly amounts (not year to date), GROSS OF FOREIGN WITHHOLDING TAX.
• Include interest on capital leases.
• Do NOT net payments against receipts.
171
A. Interest on amounts reported in
A……….….
172
B. Interest on amounts reported in
Page 5
B…………...
Bil.
Mil.
Thou.
$
Bil.
Dol.
000
Mil.
$
Please continue on next page
Thou.
Dol.
000
Form BE-577 (Rev. 2/2010)
Part III – Change in U.S. Reporter’s Equity in the Foreign affiliate during the Quarter
Transactions between the U.S. Reporter and the Foreign Affiliate
Report the transaction (i.e., market) value of consideration given or received for increases or decreases in the U.S.
Reporter's equity holdings in the foreign affiliate.
Include:
• Treasury stock transactions with the U.S. Reporter and liquidating dividends.
• Capitalization of intercompany debt (report the amount of debt converted to equity as the transaction value of the equity
increase in
B), and adjust the debt balance as appropriate in
.
Exclude Changes Caused by:
• Carrying net income (loss) to the equity account.
• The effect of treasury stock transactions with persons other than the U.S. Reporter.
• Reorganizations in capital structure that do not effect total equity.
• Transactions between a directly-owned foreign affiliate and foreign affiliates that it, in turn, owns. (That is, for affiliates
that are entirely indirectly-owned,
should be blank.)
• Investments that are written off (include the amount written off in
A or
B, as appropriate).
Unincorporated foreign affiliates must report the U.S. Reporter's share of any increase (decrease) in the foreign affiliate's
equity (or home office account) arising from its transactions with the U.S. Reporter, excluding amounts Reported in
or
.
Increase in U.S. Reporter's Equity Interest in this Affiliate
18
What is the increase in the U.S. Reporter’s equity interest in this affiliate due to:
A. Establishment of affiliate or acquisition (partial or total) of equity interest in
242
this affiliate by the U.S. Reporter either from the affiliate or from other foreign
persons?……...................................................................................................................…$
B. Capital contributions and other transactions of the U.S. Reporter with foreign
persons? Specify.
Bil.
Thou.
Dol.
000
Bil.
252
Mil.
Mil.
Thou.
………... $
Dol.
000
C. Acquisition (partial or total) of equity interest in this affiliate by the U.S. Reporter
from other U.S. persons? Give name and address of seller.
Bil.
262
Mil.
Thou.
………... $
Dol.
000
Decrease in U.S. Reporter’s Equity Interest in this Affiliate
19
What is the decrease in the U.S. Reporter's equity interest in this affiliate due to:
272
A. Liquidation of affiliate or sale (partial or total) of equity interest in this affiliate
by the U.S. Reporter either to the or to other foreign persons?
…………………..………....
Bil.
Mil.
Thou.
$
Dol.
000
B. Return of capital contributions and other transactions of the U.S. Reporter with
foreign persons that decrease? Specify.
Bil.
282
…………………..………....
Mil.
Thou.
$
Dol.
000
C. Sale (partial or total of equity interest in this affiliate by U.S. Reporter to other U.S.
persons? Give name and address of seller.
292
………... $
Page 6
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Bil.
Mil.
Thou.
Dol.
000
Form BE-577 (Rev. 2/2010)
Affiliate ID
Part III – Change in U.S. Reporter’s Equity in the Foreign affiliate during the
Quarter (Continued)
20
For
and
, what are the amounts by which
the transaction value:
301
A. Exceeds the value carried on the books of the
affiliate?…………………………………..……..………...
311
B. Is less than the value carried on the books of
the affiliate?………………………………………….…...
For acquisition
Bil.
Mil.
Thou.
$
For liquidation or sale
Dol.
000
Bil.
Mil.
Thou.
$
Dol.
Bil.
302
Mil.
Thou.
000
$
Bil.
312
000
Dol.
Mil.
Thou.
$
Dol.
000
Part IV – Selected Annual Data: to Be Completed Once Each Year
Complete items below once a year, no later than the second report following the close of the fiscal year.
• If an initial report, complete
-
as of the ending date of the quarter for the initial report.
• Include the cumulative translation adjustment in
D or
as appropriate.
• Retained earnings of unconsolidated indirectly-owned affiliates should be included on the report of the directly owned
foreign affiliate parent in
C or
as appropriate, or an equity basis.
Month
Day
Year
322
21
22
What is the foreign affiliate’s fiscal year ending date? ………………………………….………. _
_/ _ _/ _ _ _ _
What is the U.S. Reporter’s percent of direct ownership based on equity interest if
332
an incorporated affiliate, or an equivalent interest in an unincorporated affiliate?
Round to the nearest percent.
……………………………………………………………………...…….
%
U.S. Reporter’s Equity in Foreign Affiliate’s Annual Net Income
23
342
What is the U.S. Reporter’s direct equity in affiliate’s annual net income
(loss) after provision for foreign income taxes? ……………………………….………………
• Include, on an equity basis, this foreign affiliate’s share of net income and total
equity of unconsolidated foreign enterprises owned by it
• Report annual net income calculated on the same basis used for calculating
quarter net income,
A.
Bil.
Mil.
Thou.
$
Dol.
000
U.S. Reporter’s Share of Total Owners’ Equity in Foreign Affiliate at Year End (Or Quarter End if an Initial Report)
24
What is the U.S. Reporter’s direct equity in the incorporated foreign affiliate:
352
A.
Total equity – Equals the sum of
B through
383
Page 7
Mil.
Thou.
Bil.
Mil.
Thou.
All other components including other comprehensive income……………………………..
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$
Dol.
000
Dol.
000
Dol.
000
Bil.
Mil.
Thou.
Bil.
Mil.
Thou.
Translated adjustment component ……………………………………………….…………… $
392
E.
Bil.
Retained earnings (deficit)………………………………………………………………….…… $
Accumulated other comprehensive income (loss)
D.
Thou.
Capital stock and additional paid-in capital…………………………………………………… $
372
C.
Mil.
E.…… …………………….….…… $
362
B.
Bil.
Dol.
000
Dol.
000
Form BE-577 (Rev. 2/2010)
Part IV – Selected Annual Data: to Be Completed Once Each Year (Continued)
25
402
What is the U.S. Reporter’s share of total owners’ equity in the
unincorporated foreign affiliate?………………………………………………………..…………. $
• In calculating owner’s equity, any assets or liabilities of the affiliate carried on
any owners’, as well as those carried on the affiliate’s, books should be
included.
• Owner’s equity should include cumulative earnings not distributed.
Bil.
Mil.
Thou.
Dol.
000
Part V – Certification of Exemption
Complete
26
or
below to indicate reason affiliate is exempt.
Is the affiliate exempt because it is indirectly owned, AND BOTH
Quarter only) were less than $1 million?
A (End of Quarter only) AND
B (End of
Yes
No – CONTINUE to
27
Is the affiliate exempt because:
A.
Total assets were less than $60 million (positive or negative) at all times
during the affiliate’s fiscal year?
Bil.
481
Yes – specify amount …………………………………………………………….….………..
Mil.
Thou.
$
Dol.
000
No – affiliate is not exempt
B.
And annual sales or gross operating revenues, excluding sales taxes,
were less than $60 million (positive or negative) at all times during the
affiliate’s fiscal year?
Bil.
481
Yes – specify amount ………………………………………………………….……………..
Mil.
Thou.
$
Dol.
000
No – affiliate is not exempt
C.
And annual net income after provision for foreign income taxes were less
than $60 million (positive or negative) at all times during the affiliate’s fiscal
year?
Bil.
481
Yes – specify amount ………………………………………………………….……………..
Mil.
Thou.
$
Dol.
000
No – affiliate is not exempt
Month
Day
Year
502
D.
What is the affiliate’s ending fiscal year for the amounts reported in A-C?…………………
_ _/ _ _/ _ _ _ _
462
463
464
465
466
467
468
469
BEA USE ONLY
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Form BE-577 (Rev. 2/2010)
Survey Information
Purpose – Reports on this form are required in order to provide reliable and up-to-date information on U.S. direct investment abroad for
inclusion in the U.S. international transactions and the national income and product accounts.
Authority – This survey is being conducted under the International Investment and Trade in Services Survey Act (P.L.94-472, 90 Stat.
2059, 22 U.S.C. 3101-3108 as amended) – hereinafter "the Act", and the filing of reports is mandatory under Section 5(b) (2) of the Act (22
U.S.C. 3104). The implementing regulations are contained in Title 15, CFR, Part 806. This report has been approved by the Office of
Management and Budget under the Paperwork Reduction Act (44 U.S.C. 3501, et seq.).
Penalties – Whoever fails to report may be subject to a civil penalty of not less than $2,500, and not more than $25,000, and to injunctive
relief commanding such person to comply, or both. Whoever willfully fails to report shall be fined not more than $10,000 and, if an
individual, may be imprisoned for not more than one year, or both. Any officer, director, employee, or agent of any corporation who
knowingly participates in such violation, upon conviction, may be punished by a like fine, imprisonment, or both. (22 U.S.C. 3105.) Civil
penalties are subject to inflationary adjustments. Those adjustments are found in 15 CFR 6.4.
Not withstanding any other provision of the law, no person is required to respond to, nor shall any person be subject to a penalty for failure
to comply with, a collection of information subject to the requirements of the Paperwork Reduction Act, unless that collection of information
displays a currently valid OMB Control Number.
Respondent Burden – Public reporting burden for this collection of information is estimated to average 1 hour per response, including the
time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing
the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including
suggestions for reducing this burden, to: Director, Bureau of economic Analysis (BE-1), U.S. Department of Commerce, Washington, DC
20230; and to the Office of Management and Budget, Paperwork Reduction Project 0608-0004, Washington, DC 20503.
Confidentiality – The Act provides that your report is CONFIDENTIAL and may be used only for analytical or statistical purposes. Without
your prior written permission, the information filed in your report CANNOT be presented in a manner that allows it to be individually
identified. Your report CANNOT be used for purposes of taxation, investigation, or regulation. Copies retained in your files are immune
from legal process.
Retention of copies – Retain a copy of filed reports for 3 years beyond the report’s original due date.
Retroactive reports – Quarterly reports for a year may be required retroactively when it is determined that the exemption level has been
exceeded. If a foreign affiliate’s total assets, sales, or net income (loss) exceed the exemption level in a given year, it is deemed that the
exemption level will also be exceeded in the following year. A U.S. Reporter claiming exemption from filing a given report must complete
the Certification of Exemption, giving levels of these items.
Definitions
Affiliate means a business enterprise located in one country which is directly or indirectly owned or controlled by a person of another
country to the extent of 10 percent or more of its voting securities for an incorporated business or an equivalent interest for an
unincorporated business enterprise, including a branch.
Banking covers business enterprises engaged in deposit banking or closely related functions, including commercial banks, Edge Act
corporations engaged in international or foreign banking, foreign branches and agencies of U.S. banks whether or not they accept deposits
abroad, savings and loans, savings banks, bank holding companies, and financial holding companies under the Gramm-Leach-Bliley Act.
Branch means the operations or activities conducted by a person in a different location in its own name rather than through an
incorporated entity.
Certain Gains (losses) – Certain gains (losses) are gross before income tax effect.
a. Sale or disposition of financial assets including investment securities; FAS ASC Topic 320 (formerly FAS 115 – Accounting for Certain
Investments in Debt and Equity Securities) holding gains (losses) on securities classified as trading securities; FAS ASC Topic 320
impairment losses; and gains (losses) derived from derivative instruments. Dealers in financial instruments (including securities,
currencies, derivatives, and other financial instruments) and finance and insurance companies, see Special Instructions, A.1., page
xx;
b. Sales or dispositions of land, other property, plant and equipment, or other assets, and FAS ASC Topic 360 (formerly FAS 144 –
Accounting for the Impairment or Disposal of Long-Lived Assets) impairment losses. Exclude gains or losses from the sale of inventory
assets in the ordinary course of trade or business. Real estate companies, see Special Instructions, A.2., page xx;
c. Goodwill impairment as defined by FAS ASC Topic 350 (formerly FAS 142 – Goodwill and Other Intangible Assets);
d. Restructuring. Include restructuring costs that reflect write-downs or write-offs of assets or liabilities. Exclude actual payments and
charges to establish reserves for future expected payments, such as for severance pay, and fees to accountants, lawyers,
consultants, or other contractors.
e. Disposals of discontinued operations. Exclude income from the operations of a discontinued segment.
f. Re-measurement of foreign affiliate’s foreign-currency-denominated assets and liabilities due to changes in foreign exchange rates
during the reporting period;
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Form BE-577 (Rev. 2/2010)
Definitions (Continued)
Certain Gains (continued) –
g. The cumulative effect of a change in accounting principle;
h. Extraordinary, unusual, or infrequently occurring items that are material. Include losses from accidental damage or disasters after
estimated insurance reimbursement. Include other material items, including write-ups, write-downs, and write-offs of tangible and
intangible assets; gains (losses) from the sale or other disposition of capital assets; and gains (losses) from the sale or other
disposition of financial assets, including securities, to the extent not included above. Exclude legal judgments.
i. The cumulative effect of a change in the estimate of stock compensation forfeitures under FAS ASC Topic 718 (formerly FAS 123(R)
— Share-Based Payments).
Direct investment means the ownership or control, directly or indirectly, by one person of 10 percent or more of the voting securities of
an incorporated foreign business enterprise or an equivalent interest in an unincorporated foreign business enterprise, including a branch.
Foreign, when used in a geographic sense, means that which is situated outside the United States or which belongs to or is
characteristic of a country other than the United States.
Foreign affiliate means an affiliate located outside the United States in which a U.S. person has direct investment.
Foreign affiliate parent means a U.S. Reporter’s foreign affiliate that has an equity interest in another foreign affiliate of the U.S.
Reporter.
Foreign person means any person resident outside the United States or subject to the jurisdiction of a country other than the United
States.
Lease is an arrangement conveying the right to use property, plant, or equipment (i.e., land and/or depreciable assets), usually for a
stated period of time.
a. Capital lease – A long-term lease under which transfer of ownership is recognized at the inception of the lease. These
may be shown as lease contracts or accounts receivable on the lessor’s books. The asset would not be considered to be owned by
the lessor.
b. Operating lease – Generally a lease with a term which is less than the useful life of the asset and in which a transfer of ownership is
not contemplated.
Person means any individual, branch, partnership, associated group, association, estate, trust, corporation, or other organization
(whether or not organized under the laws of any State), and any government (including a foreign government, the United States
Government, a State or local government), and any agency, corporation, financial institution, or other entity or instrumentality thereof,
including a government-sponsored agency.
Rules for consolidation of foreign affiliate – The following rules should be used in determining which foreign business enterprises may
be consolidated into one foreign affiliate form:
Are the business enterprises located in the same
country?
No
Do not consolidate
No
Do not consolidate
Yes
Are the business enterprises in the same 4-digit
International Surveys Industry (ISI) classification or
integral parts of the same business operation?
Yes
Are the business enterprises owned by the same
immediate parent?
No
Yes
Is one of the business enterprises 100% owned by the
other business enterprise?
Yes
Are the business enterprises foreign bank branches?
Yes
No
Must be
consolidated
May consolidate
May consolidate
No
Do not consolidate
Note: Report a foreign affiliate parent’s equity investments of 20 percent or more in unconsolidated foreign affiliates, including all
unconsolidated majority-owned foreign affiliates, using the equity method of accounting. Report investments owned less than 20
percent in accordance with FASB ASC 320 or the cost basis of accounting.
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Please continue on next page
Form BE-577 (Rev. 2/2010)
Definitions (Continued)
United States, when used in a geographic sense, means the several States, the District of Columbia, the Commonwealth of Puerto Rico,
and all territories and possessions of the United States.
U.S. person means any person resident in the United States or subject to the jurisdiction of the United States.
U.S. Reporter means the U.S. person that has direct investment in a foreign business enterprise, including a branch. If the U.S. person is
an incorporated business enterprise, the U.S. Reporter is the fully consolidated U.S. domestic enterprise, which is defined as: (1) the U.S.
corporation whose voting securities are not owned more than 50 percent by another U.S. corporation, and (2) proceeding down each
ownership chain from that U.S. corporation, any U.S. corporation whose voting securities are more than 50 percent owned by the U.S.
corporation above it. This consolidation excludes foreign branches and all other foreign affiliates.
Special Instructions for U.S. Reporters
U.S. Reporters that cannot distinguish between equity and debt investment in their unincorporated foreign affiliates: if
your accounting records do not distinguish between intercompany debt (
A and
B) and equity ( ), then:
1. Compute the net change in the home office account. (This equals: End-of-quarter home office account minus beginning-ofquarter home office account.)
2. Subtract net income (
A), certain realized and unrealized gains (losses) taken directly to other comprehensive income or
owner’s equity (
B2), and the quarterly translation adjustment (
C).
3. If the amount computed above is positive, show it as an increase in equity (
). If the amount computed in 2. is negative,
show it as a remittance of earnings ( D and
G) to the extent that there is quarterly net income; show the residual, if any,
as a decrease in equity (
B).
A and
B should be blank.
Special Instructions for dealers in financial instruments and finance and insurance:
Dealers in financial instruments (including securities, currencies, derivatives, and other financial instruments) and
finance and insurance companies:
• Include in
B1 (1) impairment losses as defined by FAS 115, (2) realized gains or losses on trading or dealing, and (3)
unrealized gains or losses due to changes in the valuation of financial instruments that flow through the income statement,
and, goodwill impairment as defined by FAS 142.
• Include unrealized gains or losses due to changes in the valuation of financial instruments that are taken directly to other
comprehensive income in
B2 . Include income from explicit fees and commissions in
A.
Special Instructions for dealers in real estate companies:
Dealers in real estate companies:
Report gains or losses from the sale, disposition, or revaluation of land, other property, plant and equipment, or other assets
as follows:
Realized gains and losses
• Include gains or losses from the sale of real estate in the ordinary course of trade or business in net income,
• DO NOT include these gains and losses in
B1 or
B2.
Impairment of long-lived assets
• Include impairment losses, as defined by FAS 121, and recognized during the period, in net income,
Unrealized gains
• Include gains recognized due to the revaluation of real estate assets in
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A.
A and in
B1.
B1.
Form BE-577 (Rev. 2/2010)
| File Type | application/pdf |
| File Title | PowerPoint Presentation |
| Author | pick0002 |
| File Modified | 2010-07-29 |
| File Created | 2010-07-29 |