In this document, we outline the transition from business accounting to national accounts by following European system of accounts (ESA 2010), where institutional units that make up a country's economy and whose flows and stocks are recorded are those that are resident. According to Eurostat definitions, foreign direct investment (FDI) reflects the aim of obtaining a lasting interest by a resident entity of one economy (direct investor) in an affiliate that is resident in another economy (the direct investment enterprise): this is an enterprise, or branch, not resident in the compiling country over which an institutional unit resident in the compiling country has direct or indirect control. FDI has increased consistently in recent decades, which has resulted in the growing role of foreign-owned multinationals in the economy.

While FDI provides data on the monetary value of investment flows and stocks, FATS describe the economic activity of companies receiving the investment. FATS encompass inward and outward FATS data, and, similarly, FDI contains inward and outward investments

In the case of production structures with a complex organisation of production, the estimation of business statistics aggregates shows a number of methodological problems; as required by ESA 2010, the residence of an institutional unit is defined as the economic territory where its principal centre of economic interest is located, where a unit is active and carries out significant operations for at least one year. Corresponding survey data must therefore be processed to follow ESA 2010 and measuring the activity of the global enterprises: material gross fixed capital formation, related to enterprises operating in several countries, must be depurated from the activities carried out by permanent establishments, with the aim to have a valid decisional support system that provides useful information for structural and economic intervention programs concerning global enterprises; the construction sector is particularly involved in this issue.

The views and opinions expressed are those of the author and do not necessarily reflect the official position of ISTAT