At what level should data reported on the BE-120 be consolidated?

Data reported on the BE-120 should be consolidated and reported at the top U.S. reporter's level. A consolidated BE-120 will cover all of your domestic U.S. operations' transactions with unaffiliated foreign persons, and it will also cover your U.S. domestic operations' transactions with your foreign affiliates, foreign parents, and members of your foreign parent group for services and intellectual property. The BE-120 DOES NOT cover transactions by your foreign affiliates with other foreign persons.

Should we report any amortization of purchased IP over future periods, or is the purchase reportable all at once in the period of acquisition?

The recording time of charges for the use of intellectual property follows the substance of the license agreement. However, if the rights to use intellectual property are sold or purchased outright for a fixed fee, under a non-cancellable contract, and where the licensor has no remaining obligations to perform, then the whole sum is reported as a sale or purchase in the period of the acquisition or disposal. Otherwise, charges are allocated over the life of the agreement. In practice, it may be feasible to record the payments only when they are made.

How should I account for mergers and acquisitions on the BE-45?

  • If your company acquired and has voting control of a foreign entity, your survey should not consolidate their transactions under the U.S. Domestic Reporter. Any transactions between that foreign entity and the U.S. Reporter should be reported as transactions with foreign affiliates of the U.S. Reporter on the survey. You should go to www.bea.gov/surveys/diasurv for information on U.S. direct investment abroad survey requirements.
  • If your company was acquired by a U.S.