## BPM7 Chapter 14. Capital Account: Annotated Outline ## Source details **Canonical URL:** [BPM7 Chapter 14. Capital Account: Annotated Outline](https://www.imf.org/-/media/files/data/statistics/bmp7/chapters/ao-bpm-ch-14.pdf) ## Other formats - [Markdown version](/-/media/files/data/statistics/bmp7/chapters/ao-bpm-ch-14.pdf.md) - [Structured JSON version](/-/media/files/data/statistics/bmp7/chapters/ao-bpm-ch-14.pdf.json) --- ### I. Concepts and Coverage - Structure maintained from the Balance of Payments and International Investment Position Manual, sixth edition (BPM6) Chapter 13. - Section addresses coverage and recording of capital account transactions; maintained with no significant changes. - One possible outcome of GN F.18 (treatment of crypto assets, still under discussion) would be to record crypto assets without a corresponding liability as nonproduced, nonfinancial assets. If adopted, Table 13.1, Overview of the Capital Account, would be updated to reflect the new category under acquisitions and disposals of nonproduced, nonfinancial assets. - Further changes may be made to improve consistency of language with other macroeconomic statistics manuals (e.g., System of National Accounts 2025) as appropriate. ### II. Acquisitions and Disposals of Nonproduced, Nonfinancial Assets - Section describes each type of nonproduced, nonfinancial asset and how they are recorded in the balance of payments; maintained as in BPM6 with important changes. A. Natural Resources - No significant changes. B. Contracts, Leases, and Licenses - Discussion on the use of natural resources and permits to undertake specific activities will be expanded/clarified, drawing from the 2008 SNA and any relevant decision coming from the WSTT GNs. - Pending a final decision on the treatment of non-fungible tokens (NFTs) (GN DZ.10), NFTs that convey limited commercial rights would be recorded under contracts, leases, and licenses. - Pending the outcomes of GN WS.7, emission permits will be treated as financial assets, with taxes on production recorded at the time of surrender of the permits. For international emission trading schemes, this implies there can be cross-border transactions in taxes on production, which will be recorded as secondary income. Consequently, the current paragraph in BPM6 (13.14) describing possible capital account transactions related to emission permits will be removed. - Pending the outcome of discussions of GN AI.2 on the treatment of rent, and based on options in GN DZ.9 for recording payments for observable phenomena other than as rent, the right to access data may be included as a nonproduced nonfinancial asset. C. Marketing Assets (and Goodwill) - Pending final decisions on GN G.9 (undergoing feasibility testing), two possible treatments: - Marketing assets may be defined as produced assets and recorded in the current account, in which case this section would be removed and Table 13.1 adjusted accordingly; or - They may continue to be recorded in the capital account for practical reasons, although conceptually they are considered produced assets. D. Crypto Assets Without a Corresponding Liability - One possible outcome of GN F.18 is to record crypto assets without a corresponding liability as nonproduced nonfinancial assets. If adopted, they could be added as a new category here, or possibly included under an existing category (such as contracts, leases, and licenses). ### III. Capital Transfers - Section describes each type of capital transfer and how they are recorded in the balance of payments; maintained as in BPM6 with important changes and a small reordering of categories to better align with SNA. A. Debt Forgiveness - No significant changes. B. Nonlife Insurance Claims - Following the AEG (7/2012) decision, discussion of non-life insurance-related transfers will refer to expanded guidance (first introduced in Chapter 13, Secondary Income Account) on how a major catastrophic event should be defined for purposes of determining if transfers are current or capital. C. Capital Taxes - No significant changes. D. Investment Grants - No significant changes. E. One-off Guarantees and Other Debt Assumption - No significant changes. F. Other Capital Transfers - Per GN C.8, paragraph in BPM6 (13.29) will indicate that major compensation payments should be recorded as capital transfers (rather than current transfers) if intended to recover losses incurred over a multi-year period or to replace an asset (with cross-reference to where first discussed in Chapter 13). - Based on the decision in GN B.8, a new paragraph will indicate that nonrefundable contributions to government (or their nominated agency) under citizen-by-investment (CBI) programs may be classified as a current or capital transfer depending on the specific nature of the program; cross-reference to where these contributions are first introduced in Chapter 13 will be included. - Per GN F.15 and the related Issue Note, paragraph 13.33 on the transfer element to concessional lending will be revised to clarify that no transfer elements of concessional lending should be recorded in the capital account, but supplementary information on the transfer element of such lending could be provided. ### Schematic Overview (Structure) - I Concepts and Coverage - Definition - Components - Relationship to SNA - Time of Recording - Gross Recording - Table 14.1 Overview of the Capital Account - II Acquisitions and Disposals of Nonproduced, Nonfinancial Assets - Natural Resources - Contracts, Leases, and Licenses - Marketing Assets (and Goodwill) - Crypto Assets Without a Corresponding Liability - III Capital Transfers - Debt Forgiveness - Nonlife Insurance Claims - Capital Taxes - Investment Grants - One-Off Guarantees and Other Debt Assumption - Other Capital Transfers ### Questions for the Committee - Does the Committee have any suggestions on the draft outline of the chapter? - Does the Committee agree with the proposed structure and coverage of topics in the chapter presented in this outline? ### References (guidance notes and decisions cited) - GNs AI.2, B.8, C.8, DZ.9, DZ.10, F.15, F.18, G.9, WS.7, and WS.9. - AEG 7/2012 meeting decisions on life insurance and major catastrophic events. - BOPCOM 22/07 - Issue Note on treatment of concessional lending. ### Key Stakeholders Consulted - System of National Account and Balance of Payments Manual editors. - IMF Statistics Department Financial Institutions Division and Government Finance Division. - Prepared by Kristy Howell and Patrick Quill (BPM editors) and cleared by BPM Project Manager. --- _Source: https://www.imf.org/-/media/files/data/statistics/bmp7/chapters/ao-bpm-ch-14.pdf_