DATE
CONTACT NAME
CONTACT TITLE
COMPANY NAME
COMPANY ADDRESS
CITY, PROVINCE
POSTAL CODE
Sir: OR Madam: (formal letter)
Dear Sir: OR Dear Madam: (more personal letter)
(If the «Visit Confirmation» letter has been sent, begin the first paragraph with th is:) Further to our previous
letter concerning our meeting of DATE... at TIME.... in your office, we would like …
OR
(If the «Visit Confirmation» letter has not been sent, begin the first paragraph with this:) As mentioned
during our telephone conversation, this letter is to confirm our meeting at TIME on DATE in your
office and …
… to remind you the main purpose of this meeting, which is to review and confirm the legal and
the operating structures of your business profile and to define their industrial, commercial and
financial activities.
To assist you in your preparation of this meeting, we enclose the following documents:
1.
Our Business Entity Report(s) which contains two lists: your legal entities structure and
your operational entities structure, as recorded on the Business Register of Statistics Canada,
along with their related information. (Attachment 1 explains the content of the report.)
2.
A list of points or questions (Attachments 2 and 3) to be clarified which we would
appreciate resolving for the meeting.
3.
A quick reference list (Attachment 4) of the 1997 North American Industrial
Classification System (NAICS) relating to your operating units.
4.
For your convenience, two portraits (Attachments 5 and 6) representing in a summary
format the detailed legal and operational structures.
Use the following paragraph only if the contact person has requested an electronic version of the operational
structure – As agreed, we have also included a diskette with the electronic version of your
operational structure (in Excel format).
.../2.
STC/BUS 525-60422
–2–
It would be appreciated if your updates to the content of the Business Entity Report be made on
the report itself indicating also the related information, as much as possible before the meeting.
If you find it convenient, this document could be used as a turnaround document.
Statistics Canada requirements consist, essentially, in obtaining a complete list of all your
Canadian operating entities where industrial, commercial and financial activities are carried out.
To complete these requirements, it is important to define and confirm for each of the entities:
their principal industrial activity or activities (to facilitate their classification), their accounting
level of financial data availability and their number of employees.
It should be noted that all information is "collected under the authority of the Statistics Act,
revised Statutes of Canada, 1985, Chapter S-19 (short title: Statistics Act, R.S.C. 1985, c. S19)" and remains confidential under the same Act.
We appreciate your co-operation and wish to express our sincere thanks. Please do not hesitate
to contact us for clarification.
Yours truly,
Business Profile Manager
Profiling Section
Business Register Division
Statistics Canada
Jean Talon Building
8th Floor
Tunney's Pasture
Ottawa, Ontario
K1A 0T6
Telephone:
(613) 951Fax: (613) 951-0104
E-mail Address:
Encl. (NUMBER OF ATTACHMENTS)
STC/BUS 525-60422
Page 1 of 3
BUSINESS ENTITY REPORT
Attachment 1
List of Abbreviations and their Meaning
Field Name
SECTION 1 – LEGAL STRUCTURE
LE#/
(PARENT #)
LEVEL
NAME(S)/
ADDRESS
TYPE /
FRAN
CHARTER /
ACT
RESIDENCE OF OPERATION
BANKRUPT STATUS
BN
AFF
BE REF
Description
Statistics Canada’s Legal Entity (LE) ID # for each entity.
In brackets, immediate parent ID# for relationship.
Hierarchy level of relationship of each entity to the level 01 which
is the ultimate parent of the structure.
A number with the sign “>” indicates that the entity is a parent.
Legal Entity Name
Address of Corporate Head Office
Type of an entity (Incorporated [INC.], individual [IND.], etc.)
If applicable, indicates that the entity is a Franchisor
Incorporation charter number.
Jurisdiction of incorporation (Act)
For operating legal entities, it indicates whether the entity has
Canadian operations (Domestic) only, and/or abroad, or no
Canadian operations.
If applicable, indicates that the business is in a process of
bankruptcy
Business Number (BN) assigned by Canada Customs and Revenue
Agency (CCRA).
If «YES» is indicated, it has an affiliation relating to either a Joint
Venture or a Partnership type of relationship. (Refer to Section 2).
Each letter (A, B, etc.) indicates the delineation of a particular
Business Entity (BE) within the legal structure.
SECTION 2 – LEGAL AFFILIATIONS
TYPE OF AFFILIATION
LE #
BE # – if applicable –
NAME
ADDRESS
PARTICIPANTS:
Indicate if this unit is an unincorporated or incorporated joint
venture as well as if a partnership
Statistics Canada’s Legal Entity (LE) ID # for each entity.
In case of partnership, indicate the Statistics Canada’s Business
Entity (BE) ID #.
Joint Venture and/or Partnership Name.
Address of Corporate Head Office of each entity.
Participants’ or partners’ name
SECTION 3 – BUSINESS ENTITY
<< A >>, << B >>, << etc. >>
Refers to the delineated BE and is followed by its detailed content.
(See “BE REF” under section 1.)
3.1 LEGAL BASE
This section lists the legal entities (or the single legal entity) forming the particular BE (legal base content)
LE #
Statistics Canada’s Legal Entity (LE) ID # for each entity.
NAME(S)
Legal Entity Name.
CITY
City of residence (of Corporate Head Office of each entity )
PROV
Province of residence (of Corporate Head Office of each entity)
STC/BUS 525-60422
Page 2 of 3
BUSINESS ENTITY REPORT
Attachment 1
List of Abbreviations and their Meaning
Field Name
Description
3.2 OPERATING SUMMARY
This section is a summary hierarchy listing of operating entities forming the particular Business Entity. It also
reflects the major levels of the operating structure and counts of units.
Hierarchy level of relationship in the operating structure where 01
LEVEL
is the TOP Operating Entity (Business Entity – BE).
A number with the sign “>” indicates that the entity is ‘parent.’
Operating name of entities at each major level (Company,
NAME(S) (ORGANIZATION UNIT)
Division, Business Unit, Business Segment, etc.) of the operating
structure as recorded on the Business Register.
Number of production units within each of the levels of the
# PRODUCTION UNITS
structure.
Number of production units within each level and, for lower
PRODUCTION UNIT TOTAL
parent’s levels, the grand total of all production units for that level.
4. BUSINESS ENTITY OPERATIONAL STRUCTURE
4.1 << BUSINESS ENTITY >>
This section indicates data related to the top entity of the operational structure
Hierarchy level of relationship in the operating structure where 01
LEVEL
is the TOP Operating Entity (Business Entity – BE).
A number with the sign “>” indicates that the entity is a ‘parent.’
Statistics Canada’s Operating Entity (OP) ID # for the Business
OP NUMBER /
Entity.
NAME(S) /
Business Entity Name.
ADDRESS /
Civic address of the Business Entity (Corporate Head Office).
B.E. DATA
Business Entity (BE) data which are detailed below.
Month of the year-end.
• FISCAL YEAR-END
Code used to identify if the Business Entity has or doesn’t have
• INTL ACTIVITY
international investments and/or transactions.
Code to indicate if the entity belongs to the private sector or
• SECTOR
government owned, etc.
If applicable, code to indicate if the entity is part of one of the
• LEVEL OF GOVT
federal, provincial, municipal or foreign government.
OPERATING DATA
Financial and Employment data for the total Operating structure.
Value of total assets in thousands of Canadian dollars ($000) for
• TOT ASSETS
the latest fiscal year.
Value of the gross revenue in thousands of Canadian dollars
($000) for the latest fiscal year – consolidated basis (after
• REVENUE
elimination of intercompany transactions).
Maximum number of employees for the latest fiscal year.
• EMPLOYEES
4.2 DETAILS OF THE OPERATIONAL STRUCTURE
LEVEL
Hierarchy level of relationship in the operating structure to the
level 01, which is the Business Entity.
A number with the sign “>” indicates that the entity is a ‘parent.’
OP NUMBER
Statistics Canada’s Operating Entity (OP) ID # for each entity.
(PARENT NO.) /
In brackets, immediate Parent ID# for relationship.
NAME(S) /
Operating Name of the entity.
ADDRESS
Business location (civic) address.
Store (unit) number or any reference number used by the
OUTLET NO
enterprise in order to properly identify the business unit.
STC/BUS 525-60422
Page 3 of 3
BUSINESS ENTITY REPORT
Attachment 1
List of Abbreviations and their Meaning
Field Name
ACCOUNTING INFORMATION/
OPERATING DATA/
ACTIVITY COMMODITY
<<… UNIT>>
ACCOUNTING CENTRE TYPE
• INVESTMENT CENTRE
• PROFIT CENTRE
• COST RECOVERY CENTRE
• COST CENTRE
• REVENUE CENTRE
• (000) $ OUTPUT
• EMPLOYMENT
·
T % ####
OR
· S ####
Note:
######
######
Description
The information is described through the various accounting
centre types (Investment, Profit, Cost Recovery, Cost and
Revenue) as described below.
Indicates the values of data elements Output and Employee. These
values are necessary to confirm the technical (T) or support (S)
activity.
Describes the principal accountable activity carried out in order to
assign the proper industrial classification per NAICS (North
American Industrial Classification System)
Type of unit (organizational, production or
organizational/production) (See note at the end.)
Any accounting unit “within an organisation where control over
the incurrence of cost, the generating of revenue, or the use of
investment funds is found.”
Responsibility centre for which the accounting system provides
the relation between the profit realized by that centre and the
resources invested in order to measure the management’s
performance.
“A subdivision of a business that is accountable for specific
revenue and associated costs.”
An accounting unit (sub division) that chargeback other
accounting unit of the same business, where a supplier-client
relationship type is maintained.
“A subdivision of an organisation with which costs are identified
for purposes of managerial control.”
A subdivision of an organisation where revenue, and in some
cases, some marginal cost are recorded.
Value of revenue/sales/chargeback (internal transactions) in
thousands of Canadian dollars ($000) as accounted for at that unit
(business location) for the latest fiscal year (before elimination of
intercompany/internal transactions).
Maximum number of employees that are accounted for under that
unit at any one time during the latest fiscal year.
Activity Type (T = technical or S = support), industrial
classification coding (4-digit SIC and 6- digit NAICS codes) and a
brief description of the unit’s principal activity carried out and
accounted for at that accounting unit.
There are four types of Operating Units: (1) Business Entity (2) Organizational Unit (3) Production
Unit and (4) Organizational/Production Unit. Each of these units can represent a different type of
accounting centre as explained above.
STC/BUS 525-60422
Attachment 2 – Page 1
COMPANY NAME
Points and Questions to be Clarified
for the Meeting of DATE at TIME
1.
Legal Entities Structure
1.1
Please confirm the Parent Company's interrelationship of all directly or indirectly owned
subsidiaries using the Business Entity Report(s).
(A copy of your organizational chart would be helpful.)
** If applicable, add here any specific questions as per attached list of additional questions **
1.2
If the company or any of its subsidiaries are involved in partnerships/joint ventures,
please supply the names of the partners, their percentage of ownership and how they are
accounted for in your accounting records.
** If applicable, add here any specific questions as per attached list of additional questions **
1.3
a)
Please indicate if there are more than one Business Entity (BE) within your legal
entities structure.
b)
As well, please identify each legal entity that is excluded from the
consolidated/combined results, i.e. shell entities.
1.4
Please supply or confirm the Business Number (BN) for each company, as assigned by
Canada Customs and Revenue Agency (CCRA).
1.5
Please identify and/or add any legal name changes, acquisitions, disposals or
amalgamations of companies by reference to the Business Entity Report(s). If any, indicate on
that Report the date of the transaction and which other companies were involved.
** If applicable, add here any specific questions as per attached list of additional questions **
STC/BUS 525-60422
Attachment 2 – Page 2
2.
Operating Entities Structure
2.1
Using the Business Entity Report(s) and/or the organizational charts, please confirm the
operational structure (divisions, business units, departments, business segments, etc.) for each
legal entity indicating their respective operating location address (es), their principal industrial
activity, their accounting data availability, their gross revenue value and finally their maximum
number of employees (within a 12 month period).
(A copy of your own organizational/operational structure would be useful.)
2.2
For discontinued operating entities, please indicate on the attached Business Entity
Report(s) the date of the closure or if sold, the date of the sale together with the name of the
acquiring business.
2.3
For operating entities not shown on the attached Business Entity Report(s), please use
Attachment 3 for each missing unit (location). This should include any other commercial
business operations that are considered separate business units, i.e. transportation services,
communication services, laboratory services, E-Commerce, Recycling Operations, Commodity
Contract Dealing, etc.
2.4
Please explain how your corporate services and/or any other internal support services are
allocated or charged back (chargeback – internal transaction) to other internal entities, divisions
and/or business units, etc.
** If applicable, add here any specific questions as per attached list of additional questions **
2.5
Please confirm if there are intercompany transactions. When applicable, indicate which
entities are involved and to what extent, size and frequency.
2.6
Please confirm your fiscal year end.
STC/BUS 525-60422
Additional Questions (if needed)
Questions to be covered by Profilers/Analysts in the Delineation of Support Services Production
Entities and their Accountability.
These questions are to confirm if there are inter-office billing (chargeback – internal transactions) for
Support Services Rendered between Departments/Divisions where credits and/or debits are
recorded in each of the accounting unit involved.
1.
Manufacturing / Wholesale (Goods Purchased for Resale – GPRS) Divisions and /or
Operations:
Describe the activity and process of each production entity delineated.
Under each division of the enterprise (company) are there goods (products) that are sold through the sales
offices/distribution centers/head office that are company products but are not manufactured by the
company’s plants in Canada?
Are these transactions recorded / accounted for (debit - credit in the accounting units involved) such as at the
manufacturing plants or are they accounted for separately at the sales offices / distribution centers / head
office being accounting units?
Are there dedicated employees at the accounting unit level for this process (activity) – [wholesale – GPRS]?
What is the value of the sales that is attributed to this process (activity) for this accounting unit?
What are the major commodities included in these transactions and their respective percentages (for the wholesale GPRS)?
Does each division prepare full or simplified financial statements?
If not, what are the internal financial statements prepared at the divisions/plants/accounting unit
level?
2.
Corporate Head Office:
Please describe the processes or activities that are carried out at the head office.
Does this accounting unit use the chargeback method (credit and/or debit recorded in each of the
accounting units involved such as Divisions/Business units, etc.) for the services they provide to
internal users?
Is there a residual amount (costs) not allocated back (chargeback) to internal user units?
3.
Distribution Centers, Admin offices and/or Sales Offices:
Please describe the processes (activities) that are carried out at each of the unit - the Distribution Centers, Sales
Offices and/or Admin Offices.
STC/BUS 525-60422
Do these accounting units use the chargeback method (credit – cost recovery through internal
transactions and debit to the user’s accounting unit(s) such as Divisions/Business units, etc.) for
the services they provide to users?
Is there a residual amount (costs) not allocated back (chargeback) to internal user units?
4.
General:
Are the chargeback costs included in the cost of goods sold or are they shown on a separate cost line on the
operating statements?
Other Specific Questions – Where applicable
In order for Statistics Canada to recognize and represent business activities on its
Business Register (central frame for most surveys) a set of criteria have to be met. This
approach will allow the Business and Trade Statistics Program participants (different surveys) to
have a common definition of production entities in Canada. In addition, business activity
conducted in Canada MUST be linked to an owner. It is the Business Register Division
responsibility to ensure that business criteria meet the definition of a production entity.
In reviewing the business profile of NAME OF THE COMPANY as well as in conducting
analysis of NAME OF THE COMPANY business activities through the review of the YEAR annual
report and other documentation (i.e. NAME OF THE COMPANY Web Site), it became obvious that
some business activities are not currently represented on the central frame of Statistics Canada
Business Register.
In order for us to gather the necessary information to define production entities within NAME OF
THE COMPANY business activities, we have prepared a list of questions for you to complete for
each of your business activity.
Profiler/Analyst: Please prepare a separate sheet for each business activity of the company.
NAME – SEGMENT (BUSINESS ACTIVITY) OF THE COMPANY
Who owns business units?
NAME OF THE COMPANY
Who operates business units?
NAME OF THE COMPANY
Who pays employees at business
units?
NAME OF THE COMPANY
STC/BUS 525-60422
(or subsidiary)
Independent owners
Franchisees
(or subsidiary)
Independent owners
Franchisees
(or subsidiary)
Independent owners
Franchisees
How is control of activities
(management) being exercised at
business units?
NAME OF THE COMPANY
(or subsidiary)
Independent owners
Franchisees
Who owns inventory at business
units?
If business units are not owned by
NAME OF THE COMPANY (or
subsidiary),
where is the accounting done?
NAME OF THE COMPANY
(or subsidiary)
Independent owners
Franchisees
100 % of sales recorded by
NAME OF THE COMPANY then
commission paid back to
operator
100 % of sales recorded by
Operator then commission
paid back to NAME OF THE
COMPANY
Operator records only it’ s
portion of the sales, etc.
STC/BUS 525-60422
Attachment 3
UPDATE FORM FOR PRODUCTION / OPERATING ENTITY (BUSINESS LOCATION)
(Confidential when completed)
Division/Company Name
Production/Operating
Entity Complete Address
Store or Outlet # Ref
Legal Company Name &
Operating/Trade Name
(If Applicable)
Description of Principal
Industrial Process
(Activity)
Effective Date of Change (YY/MM/DD)
Opening (New)
Date
Closure
Date
Acquisition
Date
From
Sale
Date
To
Accounting Centre Type
(select one type)
Data as at Year End
Investment
Centre (A)
Profit Centre
(B)
Cost Recovery
Centre (C)
DATE
# of Dedicated Employees
Output (000$)
Business Number
STC/BUS 525-60422
Sales / Revenues
(applicable for types (A), (B) and/or (C))
Chargeback (C)
Assets (A)
$
$
$
Cost Centre (D)
Revenue
Centre (E)
Attachment 4
COMPANY NAME
North American Industrial Classification System (NAICS)
Quick Reference
1997 NAICS
CODE
STC/BUS 525-60422
DESCRIPTION