24-01-2014 Changes to BFI reporting profile with effect from January 2014

With effect from January the BFI reporting profile has been amended to reflect changed guidelines issued by the IMF, Eurostat and the ECB. These changes were discussed during the regular meetings between trust offices and DNB.

The changes mainly affect the reporting of transactions in intangible assets such as intellectual property rights (forms ANF) and turnover and costs in relation to goods and services (forms GD).

  • The changes introduce a distinction between different types of intellectual property rights for the reporting of both the purchase and sale of intellectual property rights (forms ANF) and of receipts and payments for the use of these rights (forms GD):
                - franchises and trademarks;
                - software licences;
                - intellectual property rights associated with Research & Development;
                - audiovisual and artistic originals.

  • A distinction is also introduced in the reporting of receipts and payments for the use of intellectual property rights (GD) between payments for user licences and payments for licences for the reproduction and/or distribution of the intellectual property right in question.

  • The breakdown of transactions into goods and services (not associated with intellectual property rights) has also been changed, with a distinction also being made between transactions with group companies (within the group) and with third parties (outside the group).

  • Finally, a geographical element has been introduced to forms WVB (income statement: income and expenditure) and WVA (income statement: other relevant variables).

In addition, loans within a group from/to non-resident Monetary Financial Institutions (MFIs) (banks) or non-resident Other Financial Institutions (OFIs) must no longer be classified as loans from/to third parties. All group loans must be classified as such (loans from/to shareholder or other group company), regardless of the sector of the counterparty. For example: a Special Financial Institution (BFI) takes out a loan with a foreign bank, which also has a participating interest in the BFI. The drawn-down loan must be classified in the report as a loan to the shareholder in the MFI sector (previously: loan from/to third parties).

Further information can be found in the updated notes on e-line Balance of Payments. For clarification purposes, a schematic overview relating to the items from the income statement has been added to the notes.

If you have any questions concerning the above changes in the notes, please contact your account manager at DNB.