Balance of Payments and International Investment Position Manual

CHAPTER

Overview of the Framework

A. Introduction

2.1 This chapter first describes and illustrates how

theinternationalaccountsareanintegralconceptual

part of the broader system of national accounts. It then

covers important aspects of statistics such as time

series.

B. Structure of the Accounts

References:

2008 SNA, Chapter 2, Overview, and Chapter 16, Sum-

marizing and Integrating the Accounts.

IMF, The System of Macroeconomic Accounts Statis-

tics: An Overview,PamphletSeriesNo.56.

1. Overall framework

2.2 Theinternationalaccountsforaneconomysum-

marizetheeconomicrelationshipsbetweenresidents

ofthateconomyandnonresidents.Theycomprisethe

following:

(a) the international investment position (IIP)—a

statement that shows at a point in time the value

of:financialassetsofresidentsofaneconomy

thatareclaimsonnonresidentsoraregoldbul-

lion held as reserve assets; and the liabilities of

residents of an economy to nonresidents;

(b) the balance of payments—a statement that sum-

marizeseconomictransactionsbetweenresi-

dents and nonresidents during a specific time

period; and

bilities accounts—a statement that shows other

flows, such as valuation changes, that reconciles

the balance of payments and IIP for a specific

period, by showing changes due to economic

events other than transactions between residents

and nonresidents.

2.3 Theinternationalaccountsprovideanintegrated

framework for the analysis of an economy’s international

economic relationships, including its international eco-

nomic performance, exchange rate policy, reserves man-

agement, and external vulnerability. A detailed study

oftheuseofinternationalaccountsdataisprovidedin

Chapter 14, Selected Issues in Balance of Payments and

International Investment Position Analysis.

2.4 The framework provides a sequence of accounts,

eachoneencompassingaseparateeconomicprocessor

phenomenon,andshowsthelinkagesbetweenthem.

Whileeachaccounthasabalancingitem,theaccount

alsogivesafullviewofitscomponents.

2.5 The concepts of the international accounts are

harmonized with the System of National Accounts

(SNA), so they can be compared or aggregated with

other macroeconomic statistics. The framework for

macroeconomic statistics used in the SNA and interna-

tionalaccountsisshowninFigure2.1.

2.6 Theinternationalaccountsframeworkisthe

same as the SNA framework. However, some accounts,

which are shaded in Figure 2.1, are not applicable.

2.7 The framework is designed so that the core con-

cepts can be used to develop additional data sets, as

discussedinAnnex2.1tothischapter.

2. International investment position

2.8 The IIP is a statistical statement that shows at a

point in time the value of: financial assets of residents

of an economy that are claims on nonresidents or are

gold bullion held as reserve assets; and the liabilities

of residents of an economy to nonresidents. The differ-

encebetweentheassetsandliabilitiesisthenetposi-

tionintheIIPandrepresentseitheranetclaimonora

netliabilitytotherestoftheworld.

2.9 TheIIPrepresentsasubsetoftheassetsand

liabilitiesincludedinthenationalbalancesheet.In

addition to the IIP, the national balance sheet incorpo-

rates nonfinancial assets as well as financial assets and

liabilitypositionsbetweenresidents.Thisstatementis

described further in Chapter 7.

2.10 WhereastheIIPrelatestoapointintime,the

integrated IIP statement relates to different points in

time,andithasanopeningvalue(asatthebeginning

oftheperiod)andaclosingvalue(asattheendofthe

period). The integrated IIP statement reconciles the

openingandclosingvaluesoftheIIPthroughthefinan-

cial account (flows arising from transactions) and the

other changes in financial assets and liabilities account

(other volume changes and revaluation). So, the values

intheIIPattheendoftheperiodresultfromtrans-

actions and other flows in the current and previous

periods. The integrated IIP statement consists of the

accountsexplainedinChapters7–9(i.e.,theIIP,the

financialaccount,andtheotherchangesinfinancial

assets and liabilities account, respectively).

BALANCE OF PAYMENTS AND INTERNATIONAL INVESTMENT POSITION MANUAL

Transactions/Balance of payments:

Other flows:

Key:

Shaded accounts do not appear in the international accounts.

The arrows represent the contributions of assets to production and income generation (e.g., using nonfinancial assets as an input to production,

using financial assets to generate interest and dividends).

Figure 2.1. Overview of the System of National Accounts as a

Framework for Macroeconomic Statistics Including International Accounts

Goods and services

account

Production account

Value added/GDP

Generation of income

account

Operating surplus

Distribution of income

account

National income

Secondary distribution

of income account

Disposable income

Use of income account

Saving

Opening balance sheet

Financial assets and liabilities

Net worth

Accumulation accounts

Capital account

Net lending/net borrowing

Financial account

Net lending/net borrowing

Other changes in

financial assets and

liabilities

Net other changes

Closing balance sheet

Financial assets and liabilities

Net worth

Nonfinancial assets

Other changes in

nonfinancial assets

Name of account

SNA Balancing item

2.11 Thehighestlevelofclassificationusedinthe

IIP,financialaccount,andotherchangesinassetsand

liabilities account is the functional classification, which

iscoveredinChapter6.Thefunctionalcategoriesgroup

together financial instruments based on economic moti-

vations and patterns of behavior to assist in the anal-

ysis of cross-border transactions and positions. These

categories are direct investment, portfolio investment,

financial derivatives (other than reserves) and employee

stock options, other investment, and reserve assets. The

SNA doesnothavesuchcategories,preferringtorecord

financial account activity by type of instrument alone

(althoughdirectinvestmentisamemorandumitemto

the SNA instrument classification). Chapter 5 covers the

classificationoffinancialinstruments.

3. Balance of payments

2.12 The balance of payments is a statistical state-

ment that summarizes transactions between residents

and nonresidents during a period. It consists of the goods

and services account, the primary income account, the

secondary income account, the capital account, and

the financial account. Under the double-entry account-

ingsystemthatunderliesthebalanceofpayments,each

transactionisrecordedasconsistingoftwoentriesand

thesumofthecreditentriesandthesumofthedebit

entriesisthesame.(SeeBox2.1forfurtherelaboration

on the double-entry accounting system.)

2.13 Thedifferentaccountswithinthebalanceof

payments are distinguished according to the nature of

the economic resources provided and received.

Current account

2.14 The current account shows flows of goods, ser-

vices, primary income, and secondary income between

residents and nonresidents.Thecurrentaccountisan

importantgroupingofaccountswithinthebalanceof

payments. Its components are dealt with in the follow-

ing chapters:

• Chapter 10 discusses the goods and services

account. This account shows transactions in goods

and services.

• Chapter 11 discusses the primary income account.

This account shows amounts payable and receiv-

able in return for providing temporary use to

another entity of labor, financial resources, or non-

produced nonfinancial assets.

Allowinganotherentitytouseproducedassetsgivesrisetoa

service (see paragraph 10.153). In contrast, allowing another entity

• Chapter 12 discusses the secondary income

account. This account shows redistribution of

income, that is, when resources for current pur-

poses are provided by one party without anything

ofeconomicvaluebeingsuppliedasadirectreturn

to that party. Examples include personal transfers

and current international assistance.

2.15 The balance on these accounts is known as the

current account balance. The current account balance

showsthedifferencebetweenthesumofexportsand

incomereceivableandthesumofimportsandincome

payable(exportsandimportsrefertobothgoodsand

services, while income refers to both primary and sec-

ondaryincome).AsshowninChapter14,Selected

IssuesinBalanceofPaymentsandInternationalInvest-

ment Position Analysis, the value of the current account

balance equals the saving-investment gap for the econ-

omy. Thus, the current account balance is related to

understanding domestic transactions.

Capital account

2.16 The capital account shows credit and debit

entries for nonproduced nonfinancial assets and capital

transfersbetweenresidentsandnonresidents.Itrecords

acquisitions and disposals of nonproduced nonfinan-

cialassets,suchaslandsoldtoembassiesandsalesof

leases and licenses, as well as capital transfers, that is,

the provision of resources for capital purposes by one

party without anything of economic value being sup-

pliedasadirectreturntothatparty.Thisaccountis

described further in Chapter 13.

Financial account

2.17 The financial account shows net acquisition and

disposal of financial assets and liabilities. This account

is described in Chapter 8. Financial account transac-

tions appear in the balance of payments and, because

oftheireffectonthestockofassetsandliabilities,also

in the integrated IIP statement.

2.18 Thesumofthebalancesonthecurrentand

capitalaccountsrepresentsthenetlending(surplus)or

net borrowing (deficit) by the economy with the rest of

theworld.Thisisconceptuallyequaltothenetbalance

ofthefinancialaccount.Inotherwords,thefinancial

accountmeasureshowthenetlendingtoorborrowing

to use nonproduced nonfinancial assets gives rise to rent (paragraph

11.86) and allowing another entity to use financial assets gives rise

to investment income, such as interest, dividends, and retained earn-

ings (see paragraph 11.3).

Chapter 2 g Overview of the Framework

from nonresidents is financed. The financial account

plustheotherchangesaccountexplainthechangein

theIIPbetweenbeginning-andend-periods.

Gross and net recording

2.19 Thecurrentandcapitalaccountsshowtransac-

tions in gross terms. In contrast, the financial account

shows transactions in net terms, which are shown sepa-

rately for financial assets and liabilities (i.e., net trans-

actions in financial assets shows acquisition of assets

less reduction in assets, not assets net of liabilities).

Forresourcesthatenterandleaveaneconomy(such

asre-exportedgoods,andfundsintransit),itmaybe

analytically useful to present net flows as well. Each

oftheaccountsandtheborderlinesbetweenthemare

discussedinmoredetailinthespecificchapters.

4. Accumulation accounts

2.20 The accumulation accounts comprise the capi-

tal account, financial account, and other changes in

financial assets and liabilities accounts. They show the

accumulation (i.e., acquisition and disposal) of assets

and liabilities, their financing, and other changes that

affect them. Accordingly, they explain changes between

theopeningandclosingIIP/balancesheets.Whereas

the current account is concerned with resource flows

BALANCE OF PAYMENTS AND INTERNATIONAL INVESTMENT POSITION MANUAL

Recording for individual transactions

The recording of debits and credits underlies the account-

ingsystematthelevelofindividualtransactions.Eachtrans-

action in the balance of payments is recorded as consisting

of two equal and opposite entries, reflecting the inflow and

outflow element to each exchange. For each transaction, each

partyrecordsamatchingcreditanddebitentry:

• Credit (CR.)—exports of goods and services, income

receivable, reduction in assets, or increase in liabilities.

• Debit (DR.)—imports of goods and services, income

payable, increase in assets, or reduction in liabilities.

Examples

Asimpleexampleisforsaleofgoodstoanonresident

for100incurrency.Fortheseller:

Exports 100 (CR.)

Currency 100 (DR.—Increase in financial assets)

(The transaction involves the provision of physical

resourcestononresidentsandacompensatingreceiptof

financial resources from nonresidents.)

An example of a transaction involving only financial

asset entries is the sale of shares for 50 in currency. For

the seller:

Shares and 50 (CR.—Reduction in financial assets)

other equity

Currency 50 (DR.—Increase in financial assets)

(The selling party provides shares and receives cur-

rencyinreturn.)

An example involving the exchange of an asset for the

creationofaliabilityiswhereaborrowerreceivesaloan

of70incash.Fortheborrower:

Loan 70 (CR.—Increase in liabilities)

Currency 70 (DR.—Increase in financial assets)

(There are some more complex cases when three or

morepartiesareinvolved,e.g.,thecaseofdebtassump-

tion shown in Box 8.1.)

Aggregate recording

Inbalanceofpaymentsaggregates,thecurrentand

capital account entries are totals, while financial account

entries are net values for each category/instrument for

each of assets and liabilities (as explained in paragraph

3.31).Chapter3,AccountingPrinciples,PartCprovides

furtherinformationontheaccountingsystemusedinbal-

ance of payments statistics.

Asaresultofthetwo-entrynatureofeachtransaction,

thedifferencebetweenthesumofcreditentriesandthe

sumofdebitentriesisconceptuallyzerointhenational

balanceofpayments,thatis,inconcept,theaccounts

asawholeareinbalance.Asdiscussedinparagraphs

2.24–2.26, measurement problems cause discrepancies

in practice.

The two-entry nature of the balance of payments can

be presented in aggregate data in different ways. A pre-

sentationwherethenatureoftheentriesisconveyed

bythecolumnheadings(namely,credits,debits,net

acquisition of financial assets, and net incurrence of

liabilities) is adopted in Table 2.1. This presentation is

considered to be easily understood by users. Another

presentationiswherecreditentriesareshownaspositive

anddebitentriesasnegative.Thispresentationisuseful

forcalculatingbalances,butrequiresmoreexplanation

for users (e.g., increases in assets are shown as a nega-

tive value).

In the SNA presentation, a credit entry for the com-

pilingeconomyinthebalanceofpaymentscurrent

accountiscalledausebytherestoftheworldsector

(e.g.,exportsareusedbytherestoftheworld).Simi-

larly,adebitentryforthecompilingeconomyiscalled

provisionof“resources”intheSNA (e.g., imports are a

resourceprovidedbytherestoftheworld).Becausethe

SNA rest of the world accounts use the point of view of

thenonresidents,assetsofthecompilingeconomyinthe

internationalaccountsareshownasliabilitiesoftherest

of the world sector in the SNA.

Box 2.1. Double-Entry Basis of Balance of Payments Statistics

oriented to the current period, the accumulation accounts

deal with the provision and financing of assets and liabil-

ities, which are items that will affect future periods.

2.21 The financial account shows the net acquisition

of financial assets and net incurrence of liabilities dur-

ing the specified period. In contrast, the other changes

in financial assets and liabilities account shows flows

that do not result from balance of payments transac-

tions. The other changes in financial assets and lia-

bilities account covers changes in volume, other than

balance of payments transactions; revaluation due to

exchange rate changes; and other revaluation. This

account is described further in Chapter 9.

5. Integrated recording of positions and

transactions

2.22 As highlighted in the previous sections, the

international accounts, inclusive of the IIP and bal-

ance of payments, consist of a set of accounts that are

integrated at two levels. First, while the accounts repre-

sent a great mass of detailed information on interaction

between the different economic agents, their recording

is based on the double-entry system of accounting, as

set out in Box 2.1.

2.23 Second, the system calls for consistent report-

ing by the two parties to each financial claim, transac-

tion, and other flow. In the case of the international

accounts, this consistency helps to promote compara-

bility across economies as well as the use of counter-

part data as data sources or for data validation.

6. Net errors and omissions

2.24 Although the balance of payments accounts

are, in principle, balanced, imbalances result in prac-

tice from imperfections in source data and compilation.

This imbalance, a usual feature of balance of payments

data, is labeled net errors and omissions and should be

identified separately in published data. It should not be

included indistinguishably in other items. Net errors and

omissions are derived residually as net lending/net bor-

rowing and can be derived from the financial account

minus the same item derived from the current and capital

accounts.

Therefore, a positive value of net errors and

omissions indicates an overall tendency that:

For example, if net lending/net borrowing measured from the

current and capital accounts is 29, while net lending/net borrow-

ing measured from the financial account is 31, then net errors and

omissions is +2.

(a) the value of credits in the current and capital

accounts is too low; and/or

(b) the value of debits in the current and capital

accounts is too high; and/or

cial account is too high; and/or

(d) the value of net increases in liabilities in the

financial account is too low.

(For a negative value of net errors and omissions, these

tendencies are reversed.)

2.25 The values of net errors and omissions should

be analyzed by compilers. The size and trends may help

identify data problems, such as coverage or misreport-

ing. Patterns in net errors and omissions may provide

useful information on data problems. For example, a

consistent sign indicates a bias in one or more compo-

nents. A persistent positive value of net errors and omis-

sions suggests that credit entries have been understated

or omitted or debit entries have been overstated. In con-

trast, a volatile pattern may suggest timing problems.

However, although net errors and omissions can help

point to some problems, it is an incomplete measure

because errors and omissions in opposite directions

offset each other. The term net errors and omissions

should not be interpreted as meaning errors on the part

of compilers; it is far more common that this discrep-

ancy is caused by other factors, such as incomplete data

sources and poor quality reporting.

2.26 A large or volatile value of net errors and omis-

sions hampers interpretation of the results. While it is

not possible to give guidelines on an acceptable size

of net errors and omissions, it can be assessed (where

possible) by compilers in relation to other items, such

as GDP, positions data, and gross flows. Statistical dis-

crepancies also can arise in the IIP statement. Closing

values are by definition equal to the opening values

plus net transactions plus net other changes during the

period. However, if these components are indepen-

dently measured, discrepancies may arise because of

data imperfections.

7. Linkages within the international accounts

2.27 Some of the important linkages within the

international accounts are as follows:

(a) The end of period values of the IIP are the sum

of the beginning of period values, transactions,

and other flows.

(b) The current, capital, and financial account entries

are in balance, in principle.

Chapter 2 g Overview of the Framework

thecurrentandcapitalaccountsisequaltothe

balanceonthefinancialaccount.Thisbalance

is called net lending/net borrowing, whichever

way it is derived.

(d) Consequent to (b), the current account balance is

equal to the balance on the financial account less

the balance on the capital account.

(e) Financial assets and liabilities generally give rise

to investment income. Table 5.2 shows the link

between financial instruments and their corre-

sponding income. The rate of return is derived

as the ratio of income to the corresponding stock

of assets or liabilities. (Rates of return might

also take into account holding gains or losses for

some analysis.)

2.28 Because of the harmonization of macroeco-

nomicstatisticalguidelines,itisalsopossibletolookat

residents’ transactions and positions with nonresidents

in relation to the transactions and positions between

residents. For example:

(a) the international financing can be compared with

domestic lending and borrowing; and

(b) theIIPcanbecomparedwiththenationalbal-

ance sheet and with monetary and financial

statistics.

Chapter 14, Selected Issues in Balance of Payments and

InternationalInvestmentPositionAnalysis,hasawider

discussion of interrelationships between the interna-

tional accounts and other macroeconomic data.

8. Linkages and consistency with other

data sets

2.29 Placing the international accounts in the

SNA framework shown in Figure 2.1 helps identify

linkages among macroeconomic data sets. Specific

aspects of the international accounts are provided,

forinstance,inreportingstatementsonmerchandise

trade, trade in services, direct investment, external

debt, and international reserves. Additionally, items

involving flows and positions between residents and

nonresidents that appear in the national accounts,

monetary and financial statistics, and government

finance statistics correspond exactly to international

accounts items.

2.30 The following paragraphs list data items that

should be consistent with the international accounts.

Datacompilersshouldreconciletheseoverlapping

items,withaviewtowardeliminatingorexplainingany

differences. Data consistency is particularly important

for comprehensive macroeconomic analysis, in order

toallowthedifferentdatasetstobecombinedcoher-

ently.Forexample,ifdataareconsistent,itispossible

tounderstandhowagovernmentisfinancingadeficit

from external and domestic sources, or show how the

saving-investment balances of individual sectors con-

tribute to the national current account balance.

National accounts

2.31 The international accounts correspond to the

rest of the world accounts of the SNA.Theydifferin

that the balance of payments is from the perspective of

theresidentsectors,whereasnationalaccountsdatafor

therestoftheworldarefromtheperspectiveofnon-

residents. The SNA items that are equivalent to balance

ofpaymentsitemsincludeexportsandimportsofgoods

and services, primary income, secondary income, cur-

rent external balance, balance on the capital account,

and net lending/net borrowing.

Monetary and financial statistics

2.32 Balancesheetsfordeposit-takingandother

financial corporations can be compared with the rel-

evantpartsoftheIIP.Inparticular:

• foreign assets and liabilities of the central bank;

and

• foreign assets and liabilities of other deposit-taking

corporations

should be consistent with the corresponding interna-

tionalaccountsitems.BecausetheIIPdataareorga-

nizedprimarilyonafunctionalcategorybasis,the

instrumentandsectordatafromdifferentfunctional

categories need to be combined if they are to be linked

with monetary and financial statistics. Direct invest-

ment,ifany,ofthecentralbankandotherdeposit-

taking corporations is needed to derive aggregates

consistent with monetary and financial statistics, and

thus is shown as a supplementary item where relevant.

Other adjustments may be needed for any deposit-

taking corporations whose liabilities are excluded from

broadmoney(e.g.,offshorebanksinsomecases)orfor

othertypesofcorporationsincludedinbroadmoney

(such as money market funds) and thus are included with

the deposit-taking corporations subsector in monetary

statistics.

2.33 Incasesinwhichmonetarystatisticsalso

include flows, they can be compared with the balance

of payments. Balance of payments transactions for a

BALANCE OF PAYMENTS AND INTERNATIONAL INVESTMENT POSITION MANUAL

period may differ from the transactions in foreign assets

and liabilities in the monetary statistics to the extent

that balance of payments statistics exclude transactions

in foreign assets and liabilities between residents. See

also paragraphs 14.20–14.22 on the possibility of linking

these transactions through the monetary presentation of

the balance of payments.

Government finance statistics

2.34 The following items that appear in government

finance statistics should be consistent with their inter-

national accounts equivalents:

• interest payable on general government external

debt;

• grants by general government to nonresidents;

• grants to general government from nonresidents;

• net external financing; and

• external assets and liabilities.

(Direct investment of general government, if any, is

needed to derive aggregates consistent with govern-

ment finance statistics. Thus, it is shown as a supple-

mentary item where relevant.)

9. Numerical example

2.35 Table 2.1 provides a numerical overview of

the international accounts, using data drawn from the

SNA framework presented in Annex 2.2. (The numeri-

cal example helps show interrelationships between

items.)

2.36 The international accounts data have the

same scope as the rest of the world sector in the SNA.

However, the international accounts are expressed

from the perspective of the resident units, but in

the SNA, the data for the rest of world sector are

expressed from the perspective of the nonresident

units. So, the current account surplus of 13 in Table

2.1 is presented as a current external balance for the

rest of the world sector of –13 in the table in Annex

2.2. Similarly, closing assets of 1,346 in the IIP are

shown as the liabilities of 1,346 of the rest of the

world sector in the SNA.

Chapter 2 g Overview of the Framework

BALANCE OF PAYMENTS AND INTERNATIONAL INVESTMENT POSITION MANUAL

Table 2.1. Overview of International Accounts

(Consistent with Data in Annex 2.2)

Balance of payments Credits Debits Balance

Current account

Goods and services 540 499 41

Goods 462 392 70

Services 78 107 –29

Primary income 50 40 10

Compensation of employees 6 2

Interest 13 21

Distributed income of corporations 17 17

Reinvested earnings 14 0

Rent 00

Secondary income 17 55 –38

Current taxes on income, wealth, etc. 1 0

Net nonlife insurance premiums 2 11

Nonlife insurance claims 12 3

Current international cooperation 1 31

Miscellaneous current transfers 1 10

Adjustment for change in pension entitlements

Current account balance 13

________________________________________________________________________________________________________________

Capital account

Acquisitions/disposals of nonproduced nonfinancial assets 0 0

Capital transfers 1 4

Capital account balance –3

________________________________________________________________________________________________________________

Net lending (+)/net borrowing (–) (from current and capital accounts) 10

________________________________________________________________________________________________________________

Net Net

acquisition of incurrence of

Financial account (by functional category) financial assets liabilities Balance

Direct investment 8 11

Portfolio investment 18 14

Financial derivatives (other than reserves) and ESOs 3 0

Other investment 20 22

Reserve assets 8

Total changes in assets/liabilities 57 47

Net lending (+)/net borrowing (–) (from financial account) 10

________________________________________________________________________________________________________________

Net errors and omissions 0

________________________________________________________________________________________________________________

Opening Transactions Other changes Closing

International investment position: position (fin. acc.) in volume Revaluation position

Assets (by functional category)

Direct investment 78 8 0 1 87

Portfolio investment 190 18 0 2 210

Financial derivatives (other than reserves) and ESOs 7 3 0 0 10

Other investment 166 20 0 0 186

Reserve assets 833 8 0 12 853

Total assets 1,274 57 0 15 1,346

Liabilities (by functional category)

Direct investment 210 11 0 2 223

Portfolio investment 300 14 0 5 319

Financial derivatives (other than reserves) and ESOs 0 0 0 0 0

Other investment 295 22 0 0 317

Total liabilities 805 47 0 7 859

Net IIP 469 10 0 8 487

Note: ESO = employee stock option.

The SNA tables in Annex 2.2 use instruments rather than functional categories. At the end of Annex 2.2, international accounts data are presented in terms

of instruments and the derivation of functional category data from instrument data is shown.

Chapter 2 g Overview of the Framework

This table shows the two-digit level of the IMF’s data

quality assessment framework, as at the time of publica-

tion. More detail of the framework on the specific aspects

for balance of payments is available on the IMF website.

New versions will be posted on the IMF website as they

are developed.

Box 2.2. Data Quality Assessment Framework

Quality dimensions Elements

0. Prerequisites of quality 0.1 Legal and institutional environment—The environment is supportive of statistics.

0.2 Resources—Resources are commensurate with needs of statistical programs.

0.3 Relevance—Statistics cover relevant information on the subject field.

0.4 Other quality management—Quality is a cornerstone of statistical work.

1. Assurances of integrity 1.1 Professionalism—Statistical policies and practices are guided by professional

The principle of objectivity in principles.

the collection, processing, and 1.2 Transparency—Statistical policies and practices are transparent.

dissemination of statistics is 1.3 Ethical standards—Policies and practices are guided by ethical standards.

firmly adhered to.

2.Methodological soundness 2.1 Concepts and definitions—Concepts and definitions used are in accord with

The methodological basis for internationally accepted statistical frameworks.

the statistics follows inter- 2.2 Scope—The scope is in accord with internationally accepted standards, guidelines,

nationally accepted standards, or good practices.

guidelines, or good practices. 2.3 Classification/sectorizations—Classification and sectorization systems are in

accord with internationally accepted standards, guidelines, or good practices.

2.4 Basis for recording—Flows and stocks are valued and recorded according to

internationally accepted standards, guidelines, or good practices.

3. Accuracy and reliability 3.1 Source data—Source data available provide an adequate basis to compile statistics.

Source data and statistical 3.2 Assessment of source data—Source data are regularly assessed.

techniques are sound and 3.3 Statistical techniques—Statistical techniques employed conform to sound

statistical outputs sufficiently statistical procedures.

portray reality. 3.4 Assessment and validation of intermediate data and statistical outputs—Inter-

mediate results and statistical outputs are regularly assessed and validated.

3.5 Revision studies—Revisions, as a gauge of reliability, are tracked and mined for

the information they may provide.

4. Serviceability 4.1 Periodicity and timeliness—Periodicity and timeliness follow internationally

Statistics, with adequate accepted dissemination standards.

periodicity and timeliness, 4.2 Consistency—Statistics are consistent within the data set, over time, and with

are consistent and follow a major data sets.

predictable revisions policy. 4.3 Revision policy and practice—Data revisions follow a regular and publicized

procedure.

5. Accessibility 5.1 Data accessibility—Statistics are presented in a clear and understandable manner,

Data and metadata are easily forms of dissemination are adequate, and statistics are made available on an

available and assistance to impartial basis.

users is adequate. 5.2 Metadata accessibility—Up-to-date and pertinent metadata are made available.

5.3 Assistance to users—Prompt and knowledgeable support service is available.

BALANCE OF PAYMENTS AND INTERNATIONAL INVESTMENT POSITION MANUAL

C. Metadata, Dissemination Standards,

Data Quality, and Time Series

References:

IMF, Dissemination Standards Bulletin Board at

www.imf.org.

IMF, The General Data Dissemination System: Guide

for Participants and Users.

IMF, Special Data Dissemination Standard.

1. Metadata, dissemination standards, and

data quality

2.37 Metadata are systematic, descriptive infor-

mation about data content and organization.They

provide information on the concepts, sources, and

methods underlying the data and therefore help users

to understand and assess the characteristics of the

data. Statistical compilers should provide metadata to

their users because metadata are an integral part of

thepublicationofstatistics.

2.38 Good dissemination practices are essential in

addition to good data compilation. As well as provi-

sion of metadata, aspects of good dissemination prac-

tices include predictable release schedule, availability

of publications, and identification of internal govern-

ment access to statistics before public release. In recent

years,internationalguidelineshavebeendevelopedon

good data dissemination practices, namely, the IMF’s

General Data Dissemination System and Special Data

Dissemination Standard.

2.39 The IMF’s Data Quality Assessment Frame-

workidentifiesaspectsofdataquality,includingthe

definitionsandsourcesofdataaswellasthedissem-

ination and institutional aspects. Box 2.2 shows the

broadestheadingsoftheframework.

2. Time series

Reference:

IMF, Quarterly National Accounts Manual,Chap-

terVIII,SeasonalAdjustmentandEstimationof

Trend-Cycles, and Chapter XI, Revision Policy and

the Compilation and Release Schedule.

2.40 While the tables included in the Manual have

been designed to highlight classifications and inter-

relationships, tabulations for users will generally use

timeseries.Goodpracticesinthecompilationofinter-

national accounts for time series analysis include the

following:

(a) Consistencyovertimeinconceptsandcompila-

tion practices to minimize “breaks” and “steps”

intheseries—wherechangesindefinitionsand

techniquesareimplemented,theyshouldbe

clearlyidentifiedtodatausersandtheeffect

should be quantified, where practical, prefer-

ably with an overlapping period;

(b) Atransparentwayofhandlingofrevisions—

revisionstodataarenecessarytoaccountfor

revisedmethodsandmorerecentinformation.The

revisionofdatashouldbedealtwiththroughapre-

dictable and documented policy. The causes and

sizesofsignificantindividualrevisionsshouldbe

identified. Revision studies should be made to iden-

tifythesizeandanybiasofpastrevisions.Thiswill

help to refine preliminary data and to define the

optimumrevisioncyclethatislargelydrivenbythe

availability of major data sources; and

and monthly data—the monthly values should

sum to the corresponding quarterly values,

whichshouldsumtothecorrespondingannual

values.

2.41 Seasonal adjustment of monthly and quar-

terlydataispotentiallyusefulfortimeseriesdatain

both analysis and compilation. However, some inter-

national accounts items, especially in the financial

account, may not be suitable for seasonal adjustment

because of the high degree of irregularity associated

with large, one-time transactions.

Annex 2.1

Satellite Accounts and Other Supplemental

Presentations

Reference:

2008 SNA, Chapter 29, Satellite Accounts and Other

Extensions.

2.42 This Manual shows a standard presentation,

whichisdesignedtobeusedflexiblyandtosupport

manykindsofanalysis.However,itisrecognizedthat

no single framework can meet all the different analytical

interests. Thus, satellite accounts and other supplemen-

tal presentations are encouraged. Such presentations

would be based on the circumstances in each economy

andarenotincludedinthestandardcomponentsor

memorandumitems.Theymayincludedatafromother

sourcesthatarenotnecessarilyobtainedfromtheinter-

national accounts compilation system.

Chapter 2 g Overview of the Framework

2.43 Satellite accounts provide a framework linked

to the central accounts and that enable attention to be

focused on a certain field or aspect of economic and

social life.Commonexamplesofsatelliteaccountsfor

thenationalaccountsincludetheenvironment,tour-

ism, and nonprofit institutions. International accounts

have more detailed presentations for direct invest-

ment, portfolio investment, external debt, remittances,

tourism, and reserves. The analytic and monetary pre-

sentations are discussed in Chapter 14. Statistics on

activities of multinational enterprises (as discussed

inAppendix4)arealsoarelateddataset.Thesepre-

sentationsusethebasicframeworkasastartingpoint

butdifferbyaddingdetailorotherinformation,orby

rearranging information, to meet particular needs. Use

ofthebasicframeworkasastartingpointincreases

theabilitytorelatethetopictootheraspectsofthe

economy while maintaining international compara-

bility.Specificmanualsandguidesareproducedon

some of these topics. While the term satellite accounts

suggestsamajorsetofdata,othersupplementalpre-

sentations are encouraged. This Manual refers to

supplementaryitemsaspossibleadditionaldataona

smallerscalethanafullsatelliteaccount.Therange

of supplementary data is wide and can be developed

accordingtonationalcircumstances.

BALANCE OF PAYMENTS AND INTERNATIONAL INVESTMENT POSITION MANUAL

Annex 2.2

Overview of Integrated Economic Accounts

Table 2.2. Overview of Integrated Economic Accounts (from 2008 SNA)

Production account

Uses

________________________________________________________________________________________________________________

Rest Goods

Nonfinancial Financial General Total of the and

Transactions and balancing items corporations corporations government Households NPISHs economy world services Total

Imports of goods and services 499 499

Imports of goods 392 392

Imports of services 107 107

Exports of goods and services 540 540

Exports of goods 462 462

Exports of services 78 78

Output 3,604 3,604

Intermediate consumption 1,477 52 222 115 17 1,883 1,883

Taxes on products 141 141

Subsidies on products (–) –8 –8

________________________________________________________________________________________________________________

Value added, gross/Gross domestic product 1,331 94 126 155 15 1,854 1,854

Consumption of fixed capital 157 12 27 23 3 222 222

Value added, net/Net domestic product 1,174 82 99 132 12 1,632 1,632

________________________________________________________________________________________________________________

Generation of income account

Uses

________________________________________________________________________________________________________________

Compensation of employees 986 44 98 11 11 1,150 1,150

Wages and salaries 841 29 63 11 6 950 950

Employers’ social contributions 145 15 35 0 5 200 200

Taxes on production and imports 235 235

Taxes on products 141 141

Other taxes on production 88 4 1 0 1 94 94

Subsidies –44 –44

Subsidies on products –8 –8

Other subsidies on production –35 0 0 –1 0 –36 –36

________________________________________________________________________________________________________________

Operating surplus, net 135 34 0 69 0 238 238

Mixed income, net 53 53 53

________________________________________________________________________________________________________________

Allocation of primary income account

Uses

________________________________________________________________________________________________________________

Compensation of employees 6 6

Wages and salaries 6 6

Employers’ social contributions 0 0

Taxes on production and imports 0

Taxes on products 0

Other taxes on production 0

Subsidies 0

Subsidies on products 0

Other subsidies on production 0

Property income 134 168 42 41 6 391 44 435

Interest 56 106 35 14 6 217 13 230

Distributed income of corporations 47 15 62 17 79

Reinvested earnings on foreign

direct investment 0 0 0 14 14

Other investment income 47 47 0 47

Rent 31 0 7 27 0 65 65

Balance of primary income, net /

National income, net 97 15 171 1,358 1 1,642 1,642

________________________________________________________________________________________________________________

Table 2.2 (continued)

Production account Resources

________________________________________________________________________________________________________________

Rest Goods

Nonfinancial Financial General Total of the and

Transactions and balancing items corporations corporations government Households NPISHs economy world services Total

Imports of goods and services 499 499

Imports of goods 392 392

Imports of services 107 107

Exports of goods and services 540 540

Exports of goods 462 462

Exports of services 78 78

Output 2,808 146 348 270 32 3,604 3,604

Intermediate consumption 1,883 1,883

Taxes on products 141 141

Subsidies on products (–) –8 –8

________________________________________________________________________________________________________________

Generation of income account Resources

________________________________________________________________________________________________________________

Value added, net / Net domestic

product 1,174 82 99 132 12 1,632 1,632

Compensation of employees

Wages and salaries

Employers’ social

contributions

Taxes on production and

imports

Taxes on products

Other taxes on production

Subsidies

Subsidies on products

Other subsidies on

production

________________________________________________________________________________________________________________

Allocation of primary income account Resources

________________________________________________________________________________________________________________

Operating surplus, net 135 34 0 69 0 238 238

Mixed income, net 53 53 53

Compensation of employees 1,154 1,154 2 1,156

Wages and salaries 954 954 2 956

Employers’ social

contributions 200 200 0 200

Taxes on production and

imports 235 235 235

Taxes on products 141 141 141

Other taxes on production 94 94 94

Subsidies –44 –44 –44

Subsidies on products –8 –8 –8

Other subsidies on production –36 –36 –36

Property income 96 149 22 123 7 397 38 435

Interest 33 106 14 49 7 209 21 230

Distributed income of

corporations 10 25 7 20 0 62 17 79

Reinvested earnings on foreign

direct investment 4 7 0 3 0 14 0 14

Other investment income 8 8 1 30 0 47 0 47

Rent 41 3 0 21 0 65 65

________________________________________________________________________________________________________________

Chapter 2 g Overview of the Framework

Table 2.2 (continued)

Secondary distribution of income account

Uses

________________________________________________________________________________________________________________

Rest Goods

Nonfinancial Financial General Total of the and

Transactions and balancing items corporations corporations government Households NPISHs economy world services Total

Current transfers 98 277 248 582 7 1,212 17 1,229

Current taxes on income, wealth, etc. 24 10 0 178 0 212 1 213

Net social contributions 333 333 0 333

Social benefits other than social transfers

in kind 62 205 112 0 5 384 0 384

Other current transfers 12 62 136 71 2 283 16 299

Disposable income, net 71 13 290 1,196 34 1,604 1,604

________________________________________________________________________________________________________________

Use of disposable income account

Uses

________________________________________________________________________________________________________________

Final consumption expenditure 352 1,015 32 1,399 1,399

Adjustment for the change in pension

entitlements 0 11 0 0 11 0 11

Current external balance –13 –13

________________________________________________________________________________________________________________

Capital account

Changes in assets

________________________________________________________________________________________________________________

Gross capital formation 308 8 38 55 5 414 414

Consumption of fixed capital –157 –12 –27 –23 –3 –222 –222

Changes in inventories 26 0 0 2 0 28 28

Acquisitions less disposals of valuables 2 0 3 5 0 10 10

Acquisitions less disposals of nonproduced

assets –7 0 2 4 1 0 0

Capital transfers, receivable

________________________________________________________________________________________________________________

Capital transfers, payable

________________________________________________________________________________________________________________

Net lending (+) / net borrowing (–) –56 –1 –103 174 –4 10 –10 0

________________________________________________________________________________________________________________

Financial account

Changes in assets

________________________________________________________________________________________________________________

Net acquisition of financial assets 83 172 –10 189 2 436 47 483

Monetary gold and SDRs –1 –1 1 0

Monetary gold 0 0 0 0

SDRs –1 –1 1 0

Currency and deposits 39 10 –26 64 2 89 11 100

Debt securities 7 66 4 10 –1 86 9 95

Loans 19 53 3 3 0 78 4 82

Equity and investment fund shares 10 28 3 66 0 107 12 119

Insurance, pension, and standardized

guarantee schemes 1 7 1 39 0 48 0 48

Financial derivatives and employee

stock options 3 8 0 3 0 14 0 14

Other accounts receivable/payable 4 1 5 4 1 15 10 25

________________________________________________________________________________________________________________

BALANCE OF PAYMENTS AND INTERNATIONAL INVESTMENT POSITION MANUAL

Table 2.2 (continued)

Secondary distribution of income account Resources

________________________________________________________________________________________________________________

Rest Goods

Nonfinancial Financial General Total of the and

Transactions and balancing items corporations corporations government Households NPISHs economy world services Total

Balance of primary income, net /National

income, net 97 15 171 1,358 1 1,642 1,642

Current transfers 72 275 367 420 40 1,174 55 1,229

Current taxes on income, wealth, etc. 213 213 0 213

Net social contributions 66 213 50 0 4 333 0 333

Social benefits other than social transfers

in kind 384 384 0 384

Other current transfers 6 62 104 36 36 244 55 299

________________________________________________________________________________________________________________

Use of disposable income account Resources

________________________________________________________________________________________________________________

Disposable income, net 71 13 290 1196 34 1,604 1,604

Final consumption expenditure 1,399 1,399

Adjustment for the change in pension

entitlements 11 11 0 11

________________________________________________________________________________________________________________

Capital account Changes in liabilities and net worth

________________________________________________________________________________________________________________

Saving, net 71 2 –62 192 2 205 205

Current external balance –13 –13

Gross capital formation 414 414

Consumption of fixed capital –222 –222

Changes in inventories 28 28

Acquisitions less disposals of valuables 10 10

Acquisitions less disposals of

nonproduced assets 0 0

Capital transfers, receivable 33 0 6 23 0 62 4 66

Capital transfers, payable –16 –7 –34 –5 –3 –65 –1 –66

________________________________________________________________________________________________________________

Changes in net worth due to saving and

capital transfers 88 –5 –90 210 –1 202 –10 192

________________________________________________________________________________________________________________

Financial account Changes in liabilities and net worth

________________________________________________________________________________________________________________

Net lending (+)/ net borrowing (–) –56 –1 –103 174 –4 10 –10 0

Net acquisition of liabilities 139 173 93 15 6 426 57 483

Monetary gold and SDRs

Monetary gold

SDRs 0

Currency and deposits 65 37 102 –2 100

Debt securities 6 30 38 0 0 74 21 95

Loans 21 0 9 11 6 47 35 82

Equity and investment fund shares 83 22 105 14 119

Insurance, pension, and standardized

guarantee schemes 48 0 48 0 48

Financial derivatives and employee

stock options 3 8 0 0 0 11 3 14

Other accounts receivable/payable 26 0 9 4 39 –14 25

_________________________________________________________________________________________________________________

Chapter 2 g Overview of the Framework

Table 2.2 (continued)

Other changes in the volume of assets account

Changes in assets

________________________________________________________________________________________________________________

Rest Goods

Nonfinancial Financial General Total of the and

Other flows corporations corporations government Households NPISHs economy world services Total

Economic appearance of assets 26 0 7 0 0 33 33

Produced nonfinancial assets 3 3 3

Nonproduced nonfinancial assets 26 0 4 0 0 30 30

Economic disappearance of

nonproduced nonfinancial

assets –9 0 –2 0 0 –11 –11

Other economic disappearance of

nonproduced nonfinancial assets –3 0 0 0 0 –3 –3

Catastrophic losses –5 0 –6 0 0 –11 –11

Uncompensated seizures –5 0 5 0 0 0 0

Other changes in volume n.e.c. 1 1 0 0 0 2 2

Changes in classification 6 –2 –4 0 0 0 0

Changes in sector classification

and structure 6 0 –4 0 0 2 2

Changes in classification of

assets and liabilities 0 –2 0 0 0 –2 –2

Total other changes in volume 14 –1 0 0 0 13 13

Produced nonfinancial assets –2 –2 –3 0 0 –7 –7

Nonproduced nonfinancial assets 14 0 3 0 0 17 17

Financial assets 2 1 0 0 0 3 3

Monetary gold and SDRs 0 0

Currency and deposits 0 0

Debt securities 0 0

Loans 0 0

Equity and investment fund

shares/units 2 2 2

Insurance, pension, and

standardized guarantee

schemes 1 1 1

Financial derivatives and

employee stock options 0 0

Other accounts

receivable/payable 0 0

________________________________________________________________________________________________________________

Revaluation account

Changes in assets

________________________________________________________________________________________________________________

Nonfinancial assets 144 4 44 80 8 280 280

Produced nonfinancial assets 63 2 21 35 5 126 126

Nonproduced nonfinancial

assets 81 2 23 45 3 154 154

Financial assets/liabilities 8 57 1 16 2 84 7 91

Monetary gold and SDRs 11 1 12 12

Currency and deposits 0 0

Debt securities 3 30 6 1 40 4 44

Loans 0 0

Equity and investment fund

shares/units 5 16 10 1 32 3 35

Insurance, pension, and

standardized guarantee

schemes 0 0

Financial derivatives and

employee stock options 0 0

Other accounts

receivable/payable 0 0

________________________________________________________________________________________________________________

BALANCE OF PAYMENTS AND INTERNATIONAL INVESTMENT POSITION MANUAL

Table 2.2 (continued)

Other changes in the volume of assets account Changes in liabilities and net worth

________________________________________________________________________________________________________________

Rest Goods

Nonfinancial Financial General Total of the and

Other flows corporations corporations government Households NPISHs economy world services Total

Economic appearance of assets

Produced nonfinancial assets

Nonproduced nonfinancial assets

Economic disappearance of

nonproduced nonfinancial

assets

Other economic disappearance of

nonproduced nonfinancial assets

Catastrophic losses

Uncompensated seizures

Other changes in volume n.e.c. 0 0 0 1 0 1 1

Changes in classification 0 0 2 0 0 2 2

Changes in sector classification

and structure 0 0 2 0 0 2 2

Changes in classification of assets

and liabilities 0 0 0 0 0 0 0

Total other changes in volume 0 0 2 1 0 3 3

Produced nonfinancial assets

Nonproduced nonfinancial assets

Financial assets 0 0 2 1 0 3 3

Monetary gold and SDRs

Currency and deposits

Debt securities

Loans 0 0

Equity and investment fund

shares/units 2 2 2

Insurance, pension, and standardized

guarantee schemes 1 1 1

Financial derivatives and employee

stock options

Other accounts receivable/payable

________________________________________________________________________________________________________________

Changes in net worth due to other changes in

volume of assets 14 –1 –2 –1 0 10

________________________________________________________________________________________________________________

Revaluation account Changes in liabilities and net worth

________________________________________________________________________________________________________________

Nonfinancial assets

Produced nonfinancial assets

Nonproduced nonfinancial assets

Financial assets/liabilities 18 51 7 0 0 76 15 91

Monetary gold and SDRs 12 12

Currency and deposits

Debt securities 1 34 7 42 2 44

Loans

Equity and investment fund

shares/units 17 17 34 1 35

Insurance, pension, and standardized

guarantee schemes

Financial derivatives and employee

stock options

Other accounts receivable/payable

________________________________________________________________________________________________________________

Changes in net worth due to nominal holding

gains/losses 134 10 38 96 10 288 –8 280

________________________________________________________________________________________________________________

Chapter 2 g Overview of the Framework

Table 2.2 (continued)

Rest Goods

of the and

Nonfinancial Financial General Total world services

Stocks and changes in assets corporations corporations government Households NPISHs economy account account Total

Opening balance sheet

Nonfinancial assets 2,151 93 789 1,429 159 4,621 4,621

Produced nonfinancial assets 1,274 67 497 856 124 2,818 2,818

Nonproduced nonfinancial assets 877 26 292 573 35 1,803 1,803

Financial assets/liabilities 982 3,421 396 3,260 172 8,231 805 9,036

Monetary gold and SDRs 690 80 770 770

Currency and deposits 382 150 840 110 1,482 105 1,587

Debt securities 90 950 198 25 1,263 125 1,388

Loans 50 1,187 115 24 8 1,384 70 1,454

Equity and investment fund

shares/units 280 551 12 1,749 22 2,614 345 2,959

Insurance, pension, and

standardized guarantee

schemes 25 30 20 391 4 470 26 496

Financial derivatives and

employee stock options 5 13 0 3 0 21 0 21

Other accounts

receivable/payable 150 19 55 3 227 134 361

________________________________________________________________________________________________________________

Total changes

Nonfinancial assets 300 –2 57 116 11 482 482

Produced nonfinancial assets 195 –4 29 67 7 294 294

Nonproduced nonfinancial assets 105 2 28 49 4 188 188

Financial assets/liabilities 93 230 –9 205 4 523 54 577

Monetary gold and SDRs 0 10 1 0 0 11 1 12

Currency and deposits 39 10 –26 64 2 89 11 100

Debt securities 10 96 4 16 0 126 13 139

Loans 19 53 3 3 0 78 4 82

Equity and investment fund

shares/units 17 44 3 76 1 141 15 156

Insurance, pension, and

standardized guarantee

schemes 1 8 1 39 0 49 0 49

Financial derivatives and employee

stock options 3 8 0 3 0 14 0 14

Other accounts

receivable/payable 4 1 5 4 1 15 10 25

________________________________________________________________________________________________________________

Closing balance sheet

Nonfinancial assets 2,451 91 846 1,545 170 5,103 5,103

Produced nonfinancial assets 1,469 63 526 923 131 3,112 3,112

Nonproduced nonfinancial assets 982 28 320 622 39 1,991 1,991

Financial assets/liabilities 1,075 3,651 387 3,465 176 8,754 859 9,613

Monetary gold and SDRs 0 700 81 0 0 781 1 782

Currency and deposits 421 10 124 904 112 1,571 116 1,687

Debt securities 100 1,046 4 214 25 1,389 138 1,527

Loans 69 1,240 118 27 8 1,462 74 1,536

Equity and investment fund

shares/units 297 595 15 1,825 23 2,755 360 3,115

Insurance, pension, and

standardized guarantee

schemes 26 38 21 430 4 519 26 545

Financial derivatives and employee

stock options 8 21 0 6 0 35 0 35

Other accounts

receivable/payable 154 1 24 59 4 242 144 386

________________________________________________________________________________________________________________

BALANCE OF PAYMENTS AND INTERNATIONAL INVESTMENT POSITION MANUAL

Table 2.2 (concluded)

Rest Goods

of the and

Nonfinancial Financial General Total world services

Stocks and changes in liabilities corporations corporations government Households NPISHs economy account account Total

Opening balance sheet

Nonfinancial assets

Produced nonfinancial assets

Nonproduced nonfinancial assets

Financial assets/liabilities 3,221 3,544 687 189 121 7,762 1,274 9,036

Monetary gold and SDRs 0 770 770

Currency and deposits 40 1,281 102 10 38 1,471 116 1,587

Debt securities 44 1,053 212 2 1,311 77 1,388

Loans 897 328 169 43 1,437 17 1,454

Equity and investment fund shares/units 1,987 765 4 2,756 203 2,959

Insurance, pension, and standardized

guarantee schemes 12 435 19 5 471 25 496

Financial derivatives and employee

stock options 4 10 14 7 21

Other accounts receivable/payable 237 22 8 35 302 59 361

________________________________________________________________________________________________________________

Net worth –88 –30 498 4,500 210 5,090 –469 4,621

________________________________________________________________________________________________________________

Total changes

Nonfinancial assets

Produced nonfinancial assets

Nonproduced nonfinancial assets

Financial assets/liabilities 157 224 102 16 6 505 72 577

Monetary gold and SDRs 12 12

Currency and deposits 0 65 37 0 0 102 –2 100

Debt securities 7 64 45 0 0 116 23 139

Loans 21 0 9 11 6 47 35 82

Equity and investment fund shares/units 100 39 2 0 0 141 15 156

Insurance, pension, and standardized

guarantee schemes 0 48 0 1 0 49 0 49

Financial derivatives and employee

stock options 3 8 0 0 0 11 3 14

Other accounts receivable/payable 26 0 9 4 0 39 –14 25

________________________________________________________________________________________________________________

Changes in net worth, total 236 4 –54 305 9 500 –18 482

________________________________________________________________________________________________________________

Saving and capital transfers 88 –5 –90 210 –1 202 –10 192

Other changes in volume of assets 14 –1 –2 –1 0 10 10

Nominal holding gains/losses 134 10 38 96 10 288 –8 280

Neutral holding gains/losses 82 6 27 87 6 208 –10 198

Real holding gains/losses 52 4 11 9 4 80 2 82

________________________________________________________________________________________________________________

Closing balance sheet

Nonfinancial assets

Produced nonfinancial assets

Nonproduced nonfinancial assets

Financial assets/liabilities 3,378 3,768 789 205 127 8,267 1,346 9,613

Monetary gold and SDRs 782 782

Currency and deposits 40 1,346 139 10 38 1,573 114 1,687

Debt securities 51 1,117 257 2 0 1,427 100 1,527

Loans 918 0 337 180 49 1,484 52 1,536

Equity and investment fund shares/units 2,087 804 6 0 0 2,897 218 3,115

Insurance, pension, and standardized

guarantee schemes 12 483 19 1 5 520 25 545

Financial derivatives and employee

stock options 7 18 0 0 0 25 10 35

Other accounts receivable/payable 263 0 31 12 35 341 45 386

________________________________________________________________________________________________________________

Net worth 148 –26 444 4,805 219 5,590 –487 5,103

Chapter 2 g Overview of the Framework

Table 2.3. Link between Instrument and Functional Categories

Table 2.3a. International Accounts Financial Account by Instrument

(Consistent with data in Table 2.1)

Financial account (by instrument) Changes in assets Changes in liabilities Balance

Monetary gold and SDRs 0 1

Currency and deposits –2 11

Debt securities 21 9

Loans 35 4

Equity and investment fund shares 14 12

Insurance, pension, and standardized

guarantee schemes 0 0

Financial derivatives and ESOs 3 0

Other accounts receivable/payable –14 10

Total changes in assets/liabilities 57 47

Net lending (+) / net borrowing (–) (from financial account) 10

Note: ESO = employee stock option.

Table 2.3b. IIP by Instrument

(Consistent with data in Table 2.1)

Opening Transactions Other changes Closing

International investment position position (fin. acc.) in volume Revaluation position

Assets (instrument split)

Monetary gold and SDRs 770 0 0 12 782

Currency and deposits 116 -2 0 0 114

Debt securities 77 21 0 2 100

Loans 17 35 0 0 52

Equity and investment fund shares 203 14 0 1 218

Insurance, pension, and standardized

guarantee schemes 25 0 0 0 25

Financial derivatives and ESOs 7 3 0 0 10

Other accounts receivable/payable 59 –14 0 0 45

Total 1,274 57 0 15 1,346

Liabilities (instrument split)

Monetary gold and SDRs 0 1 0 0 1

Currency and deposits 105 11 0 0 116

Debt securities 125 9 0 4 138

Loans 70 4 0 0 74

Equity and investment fund shares 345 12 0 3 360

Insurance, pensions, and standardized

guarantee schemes 26 0 0 0 26

Financial derivatives and ESOs 0 0 0 0 0

Other accounts receivable/payable 134 10 0 0 144

Total 805 47 0 7 859

Net IIP 469 10 0 8 487

BALANCE OF PAYMENTS AND INTERNATIONAL INVESTMENT POSITION MANUAL

Table 2.3c. Conversion of Data from Instrument Split to Functional Categories

(Consistent with data in Table 2.1)

Functional categories

_____________________________________________________

DI PI FD OI RA Total

Financial account

Assets (instrument split)

Monetary gold and SDRs

Currency and deposits –5 3 –2

Debt securities 2 14 5 21

Loans 35 35

Equity and investment fund shares 10 4 14

Insurance, pension, and standardized

guarantee schemes

Financial derivatives and ESOs 3 3

Other accounts receivable/payable –4 –10 –14

Total 8 18 3 20 8 57

Liabilities (instrument split)

Monetary gold and SDRs 1 1

Currency and deposits 11 11

Debt securities 4 5 9

Loans 4 4

Equity and investment fund shares 3 9 12

Insurance, pension, and standardized

guarantee schemes

Financial derivatives and ESOs

Other accounts receivable/payable 4 6 10

Total 11 14 0 22 0 47

________________________________________________________________________________________________________________

IIP (opening)

Assets (instrument split)

Monetary gold and SDRs 770 770

Currency and deposits 80 36 116

Debt securities 10 40 27 77

Loans 17 17

Equity and investment fund shares 53 150 203

Insurance, pension, and standardized

guarantee schemes 25 25

Financial derivatives and ESOs 7 7

Other accounts receivable/payable 15 44 59

Total 78 190 7 166 833 1,274

Liabilities (instrument split)

Monetary gold and SDRs

Currency and deposits 105 105

Debt securities 15 110 125

Loans 70 70

Equity and investment fund shares 155 190 345

Insurance, pension, and standardized

guarantee schemes 26 26

Financial derivatives and ESOs

Other accounts receivable/payable 40 94 134

Total 210 300 0 295 0 805

________________________________________________________________________________________________________________

Revaluation

Assets (instrument split)

Monetary gold and SDRs 12 12

Debt securities 1 1 2

Equity and investment fund shares 1 1

Total 1 2 0 0 12 15

Liabilities (instrument split)

Debt securities 1 3 4

Equity and investment fund shares 1 2 3

Total 2 5 0 0 0 7

________________________________________________________________________________________________________________

Chapter 2 g Overview of the Framework

Table 2.3c (concluded)

Functional categories

_____________________________________________________

DI PI FD OI RA Total

IIP (closing)

Assets (instrument split)

Monetary gold and SDRs 782 782

Currency and deposits 75 39 114

Debt securities 13 55 32 100

Loans 52 52

Equity and investment fund shares 63 155 218

Insurance, pension, and standardized

guarantee schemes 25 25

Fin. deriv and ESOs 10 10

Other accounts receivable/payable 11 34 45

Total 87 210 10 186 853 1,346

Liabilities (instrument split)

Monetary gold and SDRs 1 1

Currency and deposits 116 116

Debt securities 20 118 138

Loans 74 74

Equity and investment fund shares 159 201 360

Insurance, pension, and standardized

guarantee schemes 26 26

Fin. deriv and ESOs

Other accounts receivable/payable 44 100 144

Total 223 319 0 317 0 859

Note: DI = direct investment.

PI = portfolio investment.

FD = financial derivatives (other than reserves) and employee stock options.

OI = other investment.

RA = reserve assets.

BALANCE OF PAYMENTS AND INTERNATIONAL INVESTMENT POSITION MANUAL