## BPM7 Chapter 2. Overview of the Integrated Framework: Annotated Outline ## Source details **Canonical URL:** [BPM7 Chapter 2. Overview of the Integrated Framework: Annotated Outline](https://www.imf.org/-/media/files/data/statistics/bmp7/chapters/ao-bpm-ch-2.pdf) ## Other formats - [Markdown version](/-/media/files/data/statistics/bmp7/chapters/ao-bpm-ch-2.pdf.md) - [Structured JSON version](/-/media/files/data/statistics/bmp7/chapters/ao-bpm-ch-2.pdf.json) --- ### I. Introduction - Chapter focuses on presenting an overview of the integrated framework of international accounts and brief details on its components, maintaining overall structure from BPM6. - The chapter will have separate sections: - Section I: Introduction - Section II: Structure of the international accounts - Section III: Metadata, dissemination standards, data quality, and time series - Further language alignment may be made with other macroeconomic statistics manuals (e.g., 2025 SNA). ### II. Structure of the International Accounts - The structure follows BPM6 with targeted updates to reflect BPM7 terminology and links to SNA. A. Overall framework - International accounts summarize the economic relationship between residents and nonresidents. - The international accounts framework is composed of three major intertwined elements: - (i) the balance of payments; - (ii) the international investment position (IIP); and - (iii) the accumulation accounts—which explain changes in the IIP between two points in time with transactions from the balance of payments’ financial account and other changes in financial assets and liabilities accounts (revaluations, and other changes in volume). - Consistency ensured with SNA terminology “accumulation accounts” (GN B.4). - Figure 2.1 will indicate that, for international accounts, accumulation accounts include the financial account and the other changes in financial assets and liabilities accounts only. - Paragraph 2.7 referencing Annex 2.1 will be deleted (Annex 2.1 moved to Chapter 20 Communicating and Disseminating Economic Statistics). B. Balance of Payments - Scope maintained from BPM6 including Box 2.1 on double-entry accounting. - Balances on capital account and financial accounts will be explicitly defined in updated paragraphs 2.16 and 2.17 consistent with Table 2.1. - References to relevant BPM7 chapters will be updated. C. Accumulation Accounts - In the SNA framework, accumulation accounts record flows that affect entries in the balance sheets at the start and end of the accounting period. There are four accumulation accounts: - the capital account, - the financial account, - the other change in the volume of assets account, and - the revaluation account (paragraph 1.20, 2008 SNA). - For international accounts, accumulation accounts explain the changes between opening and closing IIP (external balance sheet) and comprise: - the balance of payments’ financial account and - other changes in financial assets and liabilities accounts. - References of relevant BPM7 chapters will be updated. D. International Investment Position - Definition of IIP and its description as a subset of the national balance sheet will be maintained (paragraphs 2.8 and 2.9). - Concept of integrated IIP (stock-flow reconciliation) will be introduced and noted as the centerpiece of BPM7. - Discussion in paragraph 2.11 will be maintained with no changes. - A shorter version of the integrated IIP from BPM7 Table 7.1 will be included early to highlight importance — to include only assets and liabilities by functional categories. - Table 2.1: Integrated International Investment Position Statement (presentation emphasis). E. Integrated recording of positions and transactions - No significant changes. F. Net errors and omissions - No significant changes (use of term subject to decision on GN CM.2 terminology change). G. Linkages within the international accounts - No significant changes. H. Linkages and consistency with other macroeconomic datasets - A sub-section on External Debt Statistics (EDS) will be added to highlight links between IIP and EDS, including discussion on valuation of debt securities from GN F.8. I. Numerical example - Numerical example (Table 2.2) will be maintained as in BPM6 with the IIP table structured consistent with Table 2.1. - Annex 2.1 in BPM6 (Satellite Accounts and Other Supplementary Presentations) will be dropped from this chapter and included in new BPM7 Chapter 20 Communicating and Disseminating Economic Statistics. ### III. Metadata, Dissemination Standards, Data Quality, and Time Series - Structure same as in BPM6 with minor updates and cross-references. - Seasonal adjustment - Discussion on seasonal adjustment in updated paragraph 2.41 will refer to Quarterly National Accounts Manual, 2017 Edition (Chapter 7 Seasonal Adjustment). - Data Quality Assessment Framework (DQAF) - Box 2.2 on DQAF will be based on 2012 version of DQAF for Balance of Payments and International Investment Position (e.g., item 1.1 professional competence will be known as institutional integrity following 2012 DQAF). - Framework for measuring alignment with economic accounting standards - Reference to discussion on the Framework for Measuring Alignment with Economic Accounting Standards, Section VII, Chapter 20 will be provided (Chapter 20 provides reference DQAF presented in this section). Annex 2.1. Overview of Integrated Economic Accounts - Table 2.3 Overview of Integrated Economic Accounts will be based on 2025 SNA tables on sequence of accounts; no significant changes expected. - Tables to be included: - Table 2.4 Links between Instrument and Functional Categories - Table 2.4a. Balance of Payments Financial Account by Instrument - Table 2.4b. Integrated IIP by Instrument - Table 2.4c. Conversion of Data from Instrument Split to Functional Categories - Updates to categories/data may occur based on treatment of crypto assets without corresponding liability (GN F.18) and any other updates. Schematic overview (ordering and key components) - I Introduction - II Structure of the Accounts - Overall framework - Balance of Payments - Accumulation Accounts - International Investment Position - Table 2.1 Integrated International Investment Position Statement - Integrated Recording of Positions and Transactions - Net Errors and Omissions - Linkages within the International Accounts - Linkages and Consistency with Other Macroeconomic Datasets - Numerical Example - Table 2.2 Overview of International Accounts - Box 2.1 Double-entry Basis of Balance of Payments Statistics - III Metadata, Dissemination Standards, and Data Quality - Metadata, Dissemination Standards, and Data Quality - Time Series - Box 2.2 Data Quality Assessment Framework - Annex 2.1 Overview of Integrated Economic Accounts - Table 2.3 Overview of Integrated Economic Accounts (from 2025 SNA) - Table 2.4 Links between Instrument and Functional Categories - References to guidance: - GNs B.4, F.8, and F.18 - 2012 version of DQAF for Balance of Payments and International Investment Position - Quarterly National Accounts Manual, 2017 Edition Key stakeholders consulted - System of National Accounts and Balance of Payments Manual editors - IMF Statistics Department Financial Institutions Division and Government Finance Division - Note on ordering: ordering of subsections is slightly revised from BPM6 (i.e., balance of payments, accumulation accounts, and IIP instead of presenting IIP first) to be consistent with presentation in Chapter 2, 2008 SNA. --- _Source: https://www.imf.org/-/media/files/data/statistics/bmp7/chapters/ao-bpm-ch-2.pdf_