1. 7 EGR initial and preliminary frames and validation tasks
ESTP Training on EGR
22-23 May 2019

2. Frame creation
In the consolidation from the LEUs, relationships (and enterprises) EGR 2.0 creates groups
Consolidation results for reference year 2017:
Consolidated LEUs: 1.77 million, consolidated RELs: 1.44 million
Consolidated enterprise groups: 731 thousand (including single LEUs and domestic groups)
The data of the multinational groups are loaded to the EGR FATS initial frame
Multinational enterprise group = at least 2 legal units in at least 2 countries + Foreign controlled groups (1 LEU with control from outside country)
For 2016 more than 111 thousand MNEs, for MNEs thousand (+42 thousand FCs)

3. Validation / repair action (1)
The initial EGR data are loaded to EGR FATS in December T+1
The initial picture includes errors, broken structures, missing links can be identified
E.g. due liquidated or not identified LEUs in the trees
NSIs should validate the initial frame
NSIs should repair group structures with pair-wise relationships (with REL file)
NSIs should add missing enterprises
Timing: December T+1 to January T+2
Guidelines can be found on EGR wiki:
Guidelines 4 - Repair and GEG

4. Validation / repair action (2)
The following data exchange files can be sent to EGR any time in the process
REL file with relationships to be added / removed
ENT file with updates on the enterprises
LEU file with missing data of legal units on request of EGR (authentic store NSIs in EGR CORE will be asked to send LEUs for their legal units from EGR IS - selected by other NSIs)
NSIs can send more than one transmission of files
NSIs should use for the repair work:
EGR FATS - download files
EGR Interactive Module (EGR IM)

5. EGR Interactive Module
The EGR IM is a tool to validate and improve group data in the consolidation area of EGR
Visualisation tool for the production phase
Tree structure and graphical presentation of all groups in the EGR consolidation area (not only the MNEs)
Legal units and their relationships in EGR the consolidation area
Tool to modify EGR data
Edit relationships: add/remove relationships
Edit group data: GDC, group variables

6. EGR IM main functionalities
Look into the consolidation area of EGR in the context of reference year
Possibility to search and display groups based on:
Group attributes - name or identifiers
Legal unit attributes - name or identifiers
Retrieve data files from the EGR consolidation area
Compare groups between reference years
Update relationships between legal units
Update group attributes, incl. update GDC
View notifications for changes
Validation functionalities

7. EGR IM - access to data
Users can see group details only if at least one resident legal unit is part of the group
When searching in EGR IM, users will be able to see LEUs on record level as result of the search
User are also able to see domestic groups and unlinked resident legal units
These groups are marked

8. EGR IM - search page
Search fields
Search results

9. EGR IM - data display page
Legal units
Group data
Parent RELs
Selected LEU
Subsidiary RELs

10. EGR IM - modification functions
Group data:
Change group attributes
Change GDC
Relationships:
Add parent
Add subsidiary
Change relationship
Remove relationship

11. EGR IM - download of files
Users can request in EGR download files on the actual data of the EGR consolidation area
3 files will be generated on one request
The requested files will sent by Eurostat EGR Team in EDAMIS
EGROUT_SPECIAL_N dataset
The files will be delivered in zip format, the format of the zipped files is csv
My relationships file
My groups file
All EGR groups (MNEs) file

12. EGR IM - My relationships file
Export file from EGR consolidation area, which includes all RELs in the consolidation area where the parent or the subsidiary is from my country
Structure of the file:
11 columns of the NSI input file for relationships + 6 additional columns with source code of relationship and basic data of the group of the subsidiary legal unit

13. EGR IM – My groups file My groups file Structure of the file
Export file from EGR consolidation area, which includes all groups, where at least one legal unit of the group is from my country
Structure of the file
14 columns of the NSI input file for enterprise groups + 6 additional columns with number of legal units, number of enterprises, group type
Group types
MNE groups (MNE), domestic groups without indicated foreign control (DOM), and foreign controlled resident legal units or resident groups (FC)

14. EGR IM – All EGR groups (MNEs) file
All EGR groups file
This file contains basic information (ID, name, GGH, GDC) on all initial or preliminary groups of EGR
Limitation of selection
Only groups where group type = MNE, which means more than one legal units located in at least two countries
Structure of the file
5 columns from the NSI input file for enterprise groups + 7 additional columns with GGH data, number of legal units, number of enterprises

15. EGR IM Report on individual LEUs
Report on individual LEUs and their relationships
Users of EGR IM can generate a report on the processing results of an individual LEU and their relationships
The report only requires one LEID number as input
The following information will be displayed on the report page:
The legal unit in source and transformation area
Connected legal units in the consolidation table
History of transformation of relationships
Relationships successfully consolidated

16. Access to Report on individual LEUs

17. EGR IM Legal unit report

18. EGR IM Report on non-consolidated RELs
Users are able to download the list of the relationships sent by the respective NSI and not consolidated with the reasons
Main reasons for non-consolidated RELs:
Subsidiary or parent are liquidated or same relationship is sent by another source with higher priority
Files will be sent via eDamis after user has requested such report via the application

19. Access to Report on non-consolidated RELs

20. Possible causes for non-consolidated RELs
The parent legal unit is not consolidated
The subsidiary legal unit is not consolidated
Subsidiary or parents is missing in import area
The verification step of LEID numbers failed
Relation deleted due to circular relations detected
The status of the relationship is liquidated
Business rule violation (shares>100%)
Business rule violation (control>100%)
Priority REL consolidated

21. GEG structure validations EGR IM
There are different functionalities in EGR IM allowing structure validations:
Graphical presentation of the groups
Comparison of group structure over cycles
Report providing changes of composition of group based on LEUs
Report is based on country of user
Can be filtered by groups size in terms of LEUs and by percentage of change

22. EGR IM - GEG graphical presentation
This represents a hierarchical structure where GGH is on the top

23. GEG Graph view - limited

24. Report providing changes of composition of group
This represents a hierarchical structure where GGH is on the top

25. Graphical presentation of group changes
This represents a hierarchical structure where GGH is on the top

26. Monitor GDC changes

27. Which groups to repair? Tasks of NSIs
The main objective of the validation is the repair of large and important MNE group structures with missing relationships
Each NSI can decide which units to check on the basis of available resources and dimension of the groups
NSIs are responsible for their own groups in the initial frame (GGH is in the country in the frame) as well as their national part in the other MNEs
If in the initial frame the NSI detects a new nationally based group which is a fragment of a large MNE group the NSI should deliver the relationship to EGR to repair

28. Conflicting cases and extra EU+EFTA groups
In complex and unclear cases NSIs should communicate with other NSIs to clarify and agree structures
For the moment tools (e.g. notifications in EGR IM) and rules (governance) are missing for these actions
At present the information sent later will overwrite the earlier data
Outside EU+EFTA groups will be checked and repaired by Eurostat
But EU+EFTA fragments of foreign groups should be linked back to the real groups by the NSIs

29. Which rules to apply?
The repair should be done by operating on the relationships in such a way that
Priority should be given to keeping groups aggregated rather than broken, even though the complete chain is not known
If the real parent legal unit is not known or not found in the EGR IS, an indirect relationship should be created

30. How to deliver information to EGR on structure repair?
Missing or ceased relationships can be sent in a relationship (REL) file
Same file as in data exchange on relationships
NSIs should send pairwise relationships to EGR where both parent and subsidiary are identified with LEID numbers
How to cancel a wrong relationship?
By reporting that a relationship is ceased (status=L)
How to add missing correct relationship?
By reporting an additional relationship (status=A, type=C, direct control or =A, through accounts)
Relationships can be added or ceased also in EGR IM

31. Additional information on the groups
In the repair period further data can be identified for the groups
Structure is correct, but GDC is wrong
Data of GDC to be sent in the GEG file (group phase) or in EGR IM
Additional information on groups
Characteristics of groups (group name, employment, turnover) to be sent in the GEG file (group phase) or in EGR IM

32. Scenario for NSI validation with EGR IM files (1)
NSI retrieves the lists of EGR IM after the initial frame is published
My relationships file
In the my relationships file all consolidated RELs will be visible with source
NSI can compare the RELs with own source code to the population sent, missing RELs can be identified and analysed
NSIs can analyse and validate the RELs with different source code, these relationships can be valid or wrong (for them repair REL to be prepared)

33. Scenario for NSI validation with EGR IM files (2)
My groups file
In the my groups file all consolidated groups will be visible with group type
MNEs, DOM and FC groups
Where GGH is not a real GGH, only a subsidiary, relationship should be added to the top
Where group is DOM or FC, a new cross-border relationship or a foreign GDC country code should be added to transform the group to MNE
Relationships can be sent in a REL file or in EGR IM
Feedback on groups (e.g. new country of GDC) can be sent based on the first 14 columns of the file (=GEG NSI input file) or in EGR IM

34. Scenario for NSI validation with EGR IM files (3)
Based on past experiences it can be useful to create an alphabetical list of groups on national level
This can be done based on the My groups file
Such list would allow detection of the duplicates and incorrect fragmented groups which could then be linked back to the real groups

35. Scenario for NSI validation with EGR IM files (4)
All EGR groups (MNEs) file
This file helps to have an overview on the EGR structures
The real groups of the fragments can be identified with name of group, GGH and number of legal units
GGH LEID numbers can be selected from the list, e.g. for missing cross-border relationships

36. Processing of NSI files and visibility of the changes (1)
Repair will be a continuous process
Several interactions expected between Eurostat – NSIs, e.g. requests for ENTs, LEUs
NSIs can continuously send new RELs and also GEG data (e.g. on GDC) in files and in EGR IM
In EGR CORE between December and March a complete consolidation will take place as soon as new data is delivered
New legal units, new relationships, new enterprises will be processed
Clusters and groups will be recalculated

37. Processing of NSI files and visibility of the changes (2)
Consolidation area data will be updated every day
NSI changes will be visible after process is finished
New frame, the preliminary frame will be created only once, in the end of January T+2
The preliminary frame targets to have the EGR group structures final
Some structure modifications may be sent also later, in February T+2, when NSIs should focus on modifying group characteristics

38. Group data to EGR Preliminary frame is available to NSIs in EGR FATS
End of January T+2
Structures are considered as final
In February T+2 NSIs can modify the group data
Sending group data in GEG files
Some structure modifications may be also sent
EGR IM can be used
Guidelines can be found on EGR wiki:
Guidelines 4 - Repair and GEG

39. Files to be returned EDAMIS dataset to be used:
GEG files: EGR_GEG_A
Where needed, other EGR communication files can be sent to EGR any time in the process
ENT file with updates on the enterprises
LEU file with missing data of legal units on request of EGR
Preferred: one GEG data file transmission per NSI

40. The EGR group file EDAMIS datasets to be used:
Pos
Field 1
GEG_EGR_ID 2
GEG_FRAME_RYEAR 3
GEG_NAME 4
GEG_NACE_CODE_DIV 5
GEG_PERS_EMPL 6
GEG_PERS_EMPL_ACT_OUT_EU 7
GEG_TURNOV 8
GEG_TURNOV_CUR_CODE 9
GEG_T_ASSET 10
GEG_T_ASSET_CUR_CODE 11
GEG_WEB 12
GEG_DESCR 13
GEG_UCI_LEID 14
GEG_UCI_COUNTRY_CODE
EDAMIS datasets to be used:
EGR_GEG_A
Data file with 14 fields
One record = one group
NSI data on groups to EGR
Groups identified by group EGR ID
Filled fields are updated in EGR (where data are new)
GDC (UCI) should be part of group (GEG_UCI_LEID)

41. Scenario how to deliver group data to EGR
After the publication of EGR preliminary frame NSI download the list of groups from EGR IM
The My groups file is similar to the GEG input file (keep the first 14 columns)
For FC groups country of GDC should be defined in order for the group to be sent to EGR FATS!
NSI can add to the list group information (GDC, country of GDC, group characteristics) and send back the GEG file in csv format
File should be sent in EDAMIS
Changes can be inserted also into EGR IM

42. EGR final frame Final consolidation of data at the end of February T+2
EGR final frame: March T+2
EGR output with data of MNEs and foreign controlled units where the foreign country of GDC is specified
Groups
Enterprises
Legal units
EGR final frame will be accessible via EGR FATS

43. EGR IM - Exercise Search and display
LEU data, group data, relationship data
Update functions for relationships
Update functions
for group data
Retrieve files
Compare groups
in 2 years

44. Notes