FAC. Force-account compensation or force-account construction
Factor income. Labor and property earnings from current production. In national income, it is the incomes accruing to labor and property of U.S. residents, which include compensation of employees (received), proprietors' income, rental income of persons, and corporate profits.
FASB. Financial accounting standards board
FDIUS. Foreign direct investment in the United States
FIFO. First In, First Out
Final demand. Demand of final uses.
Final estimate. The third estimate of gross domestic product (GDP) and its components for a quarter. It is released 85–90 days after the end of the quarter, and it is based on source data that are more detailed and comprehensive than the preliminary estimate. The final estimate is still subject to later revisions. Related terms: advanced estimate, preliminary estimate.
Final use(s). Final-demand components for goods and services, which consist of personal consumption expenditures (PCE); gross private fixed investment; change in private inventories; exports of goods and services; imports of goods and services, and government consumption expenditures and gross investment. Related terms: input-output (I-O) accounts.
Financial account (international). Record of transactions between U.S. residents and foreign residents resulting in changes in the level of international claims or liabilities, such as in deposits, ownership of portfolio investment securities, and direct investment. Related terms: balance of payments, current account (international), capital account (international).
Financial assets. Deposits, stocks, bonds, notes, currencies, and other instruments that possess value and give rise to claims, liabilities, or equity investment. Financial assets include bank loans, direct investments, and official private holdings of debt and equity securities and other instruments. When the holder resides in a country that is different from the issuer of the instrument, it is included in the international investment position of both countries. Related terms: financial account (international), international investment position (IIP) of the United States.
Fisher ideal price index. The geometric mean of the Laspeyres and Paasche price indexes. The Fisher index is superior to either the Laspeyres or the Paasche index if the structure of relative prices in the economy changes between the base period and the current period.
Fixed assets. Produced assets that are used repeatedly, or continuously, in processes of production for an extended period of time. They consist of equipment and software and structures (including, by convention, owner-occupied housing), but exclude consumer durables.
Fixed investment. Consists of purchases of residential and nonresidential structures and of equipment and software by private businesses, by nonprofit institutions, and by governments in the United States. (Owner-occupied housing is treated like a business in the NIPAs.) Related terms: nonresidential fixed investment, residential fixed investment.
Foreign affiliate. A foreign business enterprise in which there is U.S. direct investment–that is, in which a U.S. person, or entity, owns or controls 10 percent or more of the voting securities of an incorporated foreign business enterprise or an equivalent interest in an unincorporated foreign business enterprise. Related terms: majority-owned foreign affiliate (MOFA), foreign parent, U.S. affiliate.
Foreign direct investment in the United States (FDIUS). Ownership or control, directly or indirectly, by one foreign person, or entity, of 10 percent or more of the voting securities of an incorporated U.S. business enterprise or an equivalent interest in an unincorporated U.S. business enterprise. Related terms: direct investment, U.S. affiliate, foreign parent.
Foreign parent. The first person, or entity, outside the United States in a U.S. affiliate’s ownership chain that has a direct investment interest in the affiliate. Related terms: foreign affiliate, U.S. affiliate, U.S. parent, ultimate beneficial owner (UBO), foreign parent group.
Foreign parent group. Consists of the foreign parent and the ultimate beneficial owner (UBO) of a U.S. affiliate and other foreign companies affiliated with the foreign parent and ultimate beneficial owner. More specifically, the foreign parent group consists of (1) the foreign parent, (2) any foreign person, or entity, proceeding up the foreign parent’s ownership chain, that owns or controls more than 50 percent of the person below it, up to and including the ultimate beneficial owner, and (3) any foreign person, or entity, proceeding down the ownership chain(s) of each of these members, that is owned more than 50 percent by the person above it.
Foreign residents. Individuals, governments, business enterprises, trusts, associations, and nonprofit organizations that fulfill two criteria: (1) They have their center of economic interest outside the United States, and (2) they reside, or expect to reside, outside the United States for one year or more. Included in this definition are U.S. individuals living abroad for one year or more who are not employed by the U.S. government, foreigners residing in the United States for less than one year, and foreign affiliates of U.S. companies. In addition, foreign nationals employed in the United States by their home governments, foreign students enrolled at U.S. educational institutions, and international institutions located in the United States are also considered foreign residents.
FPG. Foreign Parent Group