D. Statistical units 4.27. In principle, FATS statistics could be collected at
either the enterprise (company) level or the level of
individual business locations or establishments. Neither basis
of collection is unequivocally superior to the other; rather,
each has its own strengths and weaknesses. For example,
some financial indicators, such as total assets, are more
naturally collected from enterprises than from
establishments. However, because enterprises are more
likely than establishments to have activities in multiple
industries, data that are classified on the basis of primary
activity can sometimes be more difficult to interpret for
enterprises than for establishments. Although there may thus
be advantages and disadvantages associated with each basis
of collection, the present Manual makes no recommendation
as to statistical units. As discussed in paragraphs 4.69-4.75
below, FATS statistics often will be developed in the context
of existing statistical systems, in which the statistical units
are already defined, and in these cases there may be little
choice in the units that are to be used for FATS.
4.28. Because the statistical units used can have an
important bearing on how the statistics should be interpreted,
the present Manual recommends that information on
statistical units be disclosed in explanatory notes.
