## Chapter 2 Overview of the Integrated Framework

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### A. Introduction and scope
- Chapter focus (IMF, Chapter 2):
  - Describes how the international external accounts are an integral conceptual part of the broader system of national accounts.
  - Covers important aspects of statistics such as time series.
- References cited:
  - "2008 2025 SNA, Chapter 23, Overview of the Integrated Framework, and Chapter 196, Summarizing and, Integrating and Balancing the Accounts."
  - "IMF, The System of Macroeconomic Accounts Statistics: An Overview, Pamphlet Series No. 56."

### B. Structure of the accounts — overall framework
- Three interconnected elements of international external accounts:
  - (a) International investment position (IIP) — point-in-time statement of financial assets of residents that are claims on nonresidents or gold bullion held as reserve assets, and liabilities of residents to nonresidents.
  - (b) Balance of payments (BOP) — transactions between residents and nonresidents during a period.
  - (c) Other changes in financial assets and liabilities accounts — other flows (e.g., valuation changes, other changes in volume) that reconcile the BOP and the IIP for a period.
- Key integration point:
  - The BOP financial account, revaluations, and other changes in volume together are accumulation accounts that explain differences between opening and closing IIP values.
  - Opening IIP + accumulation accounts + closing IIP = integrated IIP.
- Functional relation to SNA:
  - Concepts harmonized with the System of National Accounts (SNA); external-accounts framework uses same framework but with limited accumulation-account scope (financial account and other changes in financial assets and liabilities).
- Usability:
  - Framework designed so core concepts can be used to develop additional data sets (see Annex 2.1 / Chapter 20).

### 2. International investment position (IIP)
- Definition and coverage:
  - IIP shows at a point in time the value of financial assets of residents that are claims on nonresidents or gold bullion held as reserve assets, and liabilities of residents to nonresidents.
  - Net position = assets − liabilities; represents net claim on or net liability to the rest of the world.
- Relation to national balance sheet:
  - IIP is a subset of national balance sheet assets and liabilities; national balance sheet additionally includes nonfinancial assets and financial positions between residents.
  - Gold bullion held as reserve asset is the only financial asset without a corresponding liability.
- Integrated IIP statement structure (Table 2.1):
  - Beginning of period IIP
  - Accumulation accounts:
    - Transactions from BOP financial account
    - Other changes in financial assets and liabilities accounts:
      - Revaluations
      - Other changes in volume
      - Totals and breakdowns (including "Exchange rate changes", "Other price changes", "Of which: debt cancellation write-offs *", "Of which: reclassifications *")
  - End of period IIP
  - Note: Standard components listed in Appendix 14; * Encouraged items.
- Classification:
  - Highest classification level for IIP, financial account, and other changes account: functional classification — direct investment, portfolio investment, financial derivatives (other than reserves) and employee stock options, other investment, and reserve assets.
  - SNA records financial account activity by instrument; direct investment is a memorandum item to the SNA instrument classification.

### 3. Balance of payments (BOP)
- Definition and composition:
  - BOP summarizes transactions between residents and nonresidents during a period.
  - Main accounts:
    - Current account (goods and services account, primary earned income account, secondary transfer income account)
    - Capital account
    - Financial account
- Double-entry accounting (Box 2.1):
  - Each transaction recorded as two equal and opposite entries (credits and debits).
  - Credit (CR.) examples: exports, income receivable, reduction in assets, increase in liabilities.
  - Debit (DR.) examples: imports, income payable, increase in assets, reduction in liabilities.
  - Individual transaction examples (amounts preserved):
    - Sale of goods to a nonresident for 100: Exports 100 (CR.); Currency 100 (DR.—Increase in financial assets).
    - Sale of shares for 50: Shares and other equity 50 (CR.—Reduction in financial assets); Currency 50 (DR.—Increase in financial assets).
    - Borrower receives a loan of 70 in cash: Loan 70 (CR.—Increase in liabilities); Currency 70 (DR.—Increase in financial assets).
    - Humanitarian aid (export of goods) of 100: Exports 100 (CR.); Current transfer 100 (DR.).
  - Aggregate recording:
    - Current and capital accounts: totals on gross terms.
    - Financial account: net values for each category/instrument (acquisition less reduction for assets; incurrence less reduction for liabilities).
    - Conceptually sum of credits minus debits = 0; measurement problems cause discrepancies in practice.
  - Presentation options:
    - Column headings for nature of entries (credits/revenues, debits/expenditures, net acquisition of financial assets, net incurrence of liabilities) are considered clear.
    - Alternative option: credits positive, debits negative — useful for balances but requires explanation.
  - SNA linkage:
    - A credit/revenue entry in BOP current account for the compiling economy is a "useexpenditure" by the rest of the world; a debit/expenditure entry is a provision of "resourcesrevenues" in SNA.
- Current account specifics:
  - Shows transactions in goods, services, primary earned income, secondary transfer income.
  - Components discussed in subsequent chapters (Chapter 10 goods and services, Chapter 11 services, Chapter 121 primary earned income, Chapter 12 13 secondary transfer income).
  - Current account balance = exports + income receivable − (imports + income payable) = saving − investment gap (see Chapter 1419).
- Capital account specifics:
  - Records nonproduced nonfinancial assets and capital transfers between residents and nonresidents (e.g., land sold to embassies, sales of leases and licenses).
  - Capital account balance = disposals receivable − acquisitions payable.
- Financial account specifics:
  - Shows net acquisition and disposal of financial assets and liabilities (see Chapter 8).
  - Financial account balance = net acquisition of financial assets less net incurrence of liabilities.
- Relationship among accounts:
  - Sum of current and capital account balances = net lending (surplus) or net borrowing (deficit) of the economy; conceptually equal to net financial account balance.
  - Financial account + other changes account (accumulation accounts) explain change in IIP between beginning- and end-periods.

### 4. Accumulation accounts
- SNA framework:
  - Accumulation accounts record flows that affect balance-sheet entries at start and end of period.
  - Four accumulation accounts in SNA: capital account, financial account, revaluation account, other change in volume of assets account (paragraph 1.xx, 2025 SNA).
- External-accounts framework for IIP:
  - Accumulation accounts explain changes between opening and closing IIP.
  - External accumulation accounts comprise:
    - Capital account,
    - BOP financial account,
    - Other changes in financial assets and liabilities accounts.
  - Distinction:
    - Current account concerns resource flows for current period.
    - Accumulation accounts relate to provision and financing of assets and liabilities affecting future periods.

### 2.21 Financial account and other changes in financial assets and liabilities
- Definition and scope:
  - Financial account shows net acquisition of financial assets and net incurrence of liabilities during the period.
  - Other changes account covers revaluations (exchange rate changes and other price changes) and other changes in volume (write-offs and cancellations, reclassifications).
- Integrated recording:
  - Recording based on double-entry system; consistent reporting by resident and nonresident parties required to promote comparability and use of counterpart data.
- Net errors and omissions / Statistical discrepancy:
  - Imbalances arise from imperfections in source data and compilation; labeled net errors and omissionsstatistical discrepancy and identified separately in published data.
  - Residual derivation:
    - Net errors and omissionsstatistical discrepancy = financial account − net lending/net borrowing derived from current and capital accounts (residually).
  - Interpretations of a positive net errors and omissionsstatistical discrepancy:
    - (a) credits/revenues in current and capital accounts too low; and/or
    - (b) debits/expenditures in current and capital accounts too high; and/or
    - (c) net increases in acquisition of assets in financial account too high; and/or
    - (d) net increases in incurrence of liabilities in financial account too low.
  - For negative values, tendencies reversed.
  - Guidance for compilers:
    - Analyze size and trends to identify data problems; consistent sign suggests bias; persistent positive value suggests understated/omitted credit entries or overstated debit entries; volatile pattern may suggest timing problems.
    - Statistical discrepancynet errors and omissions are incomplete measures because opposing errors can offset; do not imply compiler error necessarily.
  - Assessment considerations:
    - Large or volatile statistical discrepancy hampers interpretation; no universal guideline on acceptable size — assess relative to GDP, positions data, and gross flows.
  - Numerical example:
    - If net lending/net borrowing from current and capital accounts is 29, and from the financial account is 31, then net errors and omissionsstatistical discrepancy = +2.

### Linkages within the international external accounts and with other macroeconomic datasets
- Core linkages (Chapter 2, paragraph 2.27):
  - (a) End-of-period IIP = beginning-of-period IIP + BOP financial account transactions + other flowschanges in financial assets and liabilities.
  - (b) Current, capital, and financial account entries are in balance, in principle.
  - (c) Balance of sum of current and capital accounts = balance on financial account (net lending/net borrowing).
  - (d) Current account balance = financial account balance less capital account balance.
  - (e) Financial assets/liabilities give rise to investment income; income rates of return = income ÷ corresponding stock of assets or liabilities.
- Harmonization:
  - Allows comparison of residents’ transactions and positions with nonresidents to transactions and positions between residents:
    - (a) international external financing compared with domestic lending and borrowing;
    - (b) IIP compared with national balance sheet and monetary and financial statistics.
- Equivalences and differences with SNA:
  - SNA items equivalent to BOP items: exports/imports of goods and services; primary earned income; secondary transfer income; current external balance; balance on capital account; net lending/net borrowing of rest of the world account.
  - National accounts use instrument classification; BOP financial account and IIP use functional categories.
- Monetary and financial statistics linkage:
  - Balance sheets for deposit-taking and other financial corporations can be compared with relevant parts of IIP (foreign assets/liabilities of central bank and other deposit-taking corporations).
  - IIP organized by functional category — instrument and sector data must be combined to link with monetary and financial statistics.
  - Direct investment of central bank and deposit-taking corporations shown as supplementary item where relevant.
  - Adjustments may be needed for entities whose liabilities are excluded or included in broad money (e.g., offshore banks, money market funds).
  - BOP transactions may differ from monetary statistics to the extent that BOP excludes transactions in foreign assets/liabilities between residents.
- Government finance statistics linkage:
  - Items to be consistent with international external accounts include:
    - interest payable on general government external debt;
    - interest or dividends receivable on general government holdings of external assets;
    - grants/transfers by general government to nonresidents;
    - grants/transfers to general government from nonresidents;
    - net external financing; and
    - external assets and liabilities.
  - Direct investment of general government shown as supplementary item where relevant.
- External debt statistics linkage:
  - IIP positions generally valued at market value on reporting date (except nonnegotiable instruments such as loans, deposits, other accounts receivable/payable valued at nominal value).
  - EDS Guide recommends debt instruments be valued at nominal value and debt securities at market value.
  - Gross external debt position (with debt securities at market value) = debt liabilities in IIP (total IIP liabilities excluding equity, investment fund shares, financial derivatives, and ESOs).
  - Table 2.2 mapping of liabilities to external debt categories includes:
    - DI: Intercompany lending = Direct investment—debt instruments
    - Debt securities = Portfolio investment—debt securities
    - SDR allocations = Other investments/debt instruments—SDR allocations
    - Currency and deposits = Other investments/debt instruments—currency and deposits
    - Loans = Other investments/debt instruments--loans
    - Other debt liabilities = Other investments/debt instruments—insurance, pension, and standardized guarantee schemes
    - Trade credit and advances = Other investments/debt instruments—trade credit and advances
    - Other debt liabilities = Other investments/debt instruments—other accounts receivable/payable-other

### Numerical example (selected figures from Table 2.1 23)
- Current account (credits/revenues, debits/expenditures, balance):
  - Goods and services: 540, 499, 41
  - Goods: 462, 392, 70
  - Services: 78, 107, –29
  - Primary Earned income: 50, 40, 10
    - Compensation Remuneration of employees: 6, 2
    - Interest: 13, 21
    - Distributed income of corporations: 17, 17
    - Reinvested earnings: 14, 0
    - Rent: 0, 0
  - Secondary Transfer 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
  - 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
- Financial account (by functional category) (Net acquisition of financial assets, Net incurrence of 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 omissionsStatistical discrepancy: 0
- Accumulation Accounts — IIP (Opening position, Transactions (fin. acc.), Other changes in volume, Revaluations, Closing position):
  - Assets (by functional category):
    - Direct investment: 78, 8, 1, 0, 87
    - Portfolio investment: 190, 18, 2, 0, 210
    - Financial derivatives (other than reserves) and ESOs: 7, 3, 0, 0, 10
    - Other investment: 166, 20, 0, 0, 186
    - Reserve assets: 833, 8, 12, 0, 853
    - Total assets: 1,274, 57, 15, 0, 1,346
  - Liabilities (by functional category):
    - Direct investment: 210, 11, 2, 0, 223
    - Portfolio investment: 300, 14, 5, 0, 319
    - Financial derivatives (other than reserves) and ESOs: 0, 0, 0, 0, 0
    - Other investment: 295, 22, 0, 0, 317
    - Total liabilities: 805, 47, 7, 0, 859
  - Net IIP: 469, 10, 8, 0, 487
- Note: ESO = employee stock option.
- Illustrative perspective difference:
  - The international external accounts data are from resident perspective while SNA rest of the world is from nonresident perspective (e.g., current account surplus of 13 is presented as –13 for the rest of the world).

### 3.3 Statistical techniques; data quality and dissemination
- Fundamental statistical practice (sections 3.3–5.3):
  - 3.3 Statistical techniques — conform to sound statistical procedures.
  - 3.4 Assessment and validation — intermediate results and outputs are regularly assessed and validated.
  - 3.5 Revision studies — revisions tracked and analyzed as gauge of reliability.
  - 4.1 Periodicity and timeliness — follow internationally accepted dissemination standards.
  - 4 Serviceability — statistics with adequate periodicity and timeliness are consistent and follow predictable revisions policy.
  - 4.2 Consistency — statistics consistent within data set, over time, and with major data sets.
  - 4.3 Revision policy and practice — data revisions follow regular and publicized procedure.
  - 5 Accessibility — data and metadata easily available and assistance to users adequate.
    - 5.1 Data accessibility — clear presentation, adequate dissemination, impartial availability.
    - 5.2 Metadata accessibility — up-to-date and pertinent metadata available.
    - 5.3 Assistance to users — prompt and knowledgeable support available.
- Metadata and dissemination standards (section 1):
  - 2.37 Metadata provide systematic descriptive information on concepts, sources, and methods; compilers should provide metadata as integral part of publication of statistics.
  - 2.38 Good dissemination practices include metadata provision, predictable release schedule, availability of publications, and identification of internal government access before public release. International guidelines include IMF’s Enhanced General Data Dissemination System, Special Data Dissemination Standard, and Special Data Dissemination Standard Plus.
  - 2.39 IMF’s Data Quality Assessment Framework identifies aspects of data quality, including definitions and sources as well as dissemination and institutional aspects; Chapter 20, Section VII discusses the Framework for Measuring Alignment with Economic Accounting Statistical Standards and refers to the IMF’s DQAF.

### Time series practices and satellite presentations
- Time series good practices (section 2; reference to Quarterly National Accounts Manual):
  - (a) Consistency over time in concepts and compilation to minimize "breaks" and "steps"; changes should be clearly identified and quantified where practical with overlapping period.
  - (b) Transparent handling of revisions — predictable and documented policy; causes and sizes of significant individual revisions should be identified; revision studies recommended.
  - (c) Consistency across annual, quarterly, monthly data — monthly values should sum to quarterly values, quarterly to annual.
  - 2.41 Seasonal adjustment potentially useful for monthly and quarterly data; some financial account items may not be suitable due to high irregularity.
- Satellite accounts and supplemental presentations:
  - 2.42 Standard presentation designed to be used flexibly; satellite accounts and supplemental presentations encouraged and based on economy circumstances.
  - 2.43 Satellite accounts provide framework linked to central accounts for focused analysis (examples: environment, tourism, nonprofit institutions); international accounts may have detailed presentations for direct investment, portfolio investment, external debt, remittances, tourism, reserves.

### Key numerical excerpts and aggregates (selected from Annex/Table excerpts)
- Imports of goods and services: 499
  - Imports of goods: 392
  - Imports of services: 107
- Exports of goods and services: 540
  - Exports of goods: 462
  - Exports of services: 78
- Output: 3,604
- Intermediate consumption: 1,883
- Taxes on products: 141
- Subsidies on products (–): –8
- Value added, gross/Gross domestic product: 1,331 94 126 155 15 1,854
  - (Total reported as) 1,854
- Consumption of fixed capital: 157 12 27 23 3 222
  - (Total reported as) 222
- Value added, net/Net domestic product: 1,174 82 99 132 12 1,632
  - (Total reported as) 1,632
- Compensation of employees: 986 44 98 11 11 1,150
  - Wages and salaries: 841 29 63 11 6 950
  - Employers’ social contributions: 145 15 35 0 5 200
- Property income totals and components (selected):
  - 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
  - Rent: 31 0 7 27 0 65
- Balance of primary income, net/National income, net: 97 15 171 1,358 1 1,642
  - (Total reported as) 1,642
- 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
  - 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
  - (Total reported as) 1,604
- Final consumption expenditure: 352 1,015 32 1,399
  - (Total reported as) 1,399
- Gross capital formation: 308 8 38 55 5 414
  - (Total reported as) 414
- Consumption of fixed capital: –157 –12 –27 –23 –3 –222
  - (Total reported as) –222
- Changes in inventories: 26 0 0 2 0 28
  - (Total reported as) 28
- Net lending (+) / net borrowing (–): –56 –1 –103 174 –4 10 –10 0
- Financial account: Net acquisition of financial assets: 83 172 –10 189 2 436 47 483
  - 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
- Net acquisition of liabilities: 139 173 93 15 6 426 57 483
  - 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
  - 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
- Other changes in the volume of assets: 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
- Revaluation account: Changes in 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
  - Debt securities: 3 30 6 1 40 4 44
  - Equity and investment fund shares/units: 5 16 10 1 32 3 35

### Overview and key aggregates (balance sheet and IIP highlights)
- Opening balance sheet, Total economy:
  - Nonfinancial assets: 4,621
  - Financial assets/liabilities: 8,231 (plus Rest of the world account 805) → Total 9,036
  - Net worth: 4,621
- Closing balance sheet, Total economy:
  - Nonfinancial assets: 5,103
  - Financial assets/liabilities: 8,754 (plus Rest of the world account 859) → Total 9,613
  - Net worth: 5,103
- Total changes, Total economy:
  - Nonfinancial assets: 482
  - Financial assets/liabilities: 523 (changes) → 577 (reported in another table)
  - Changes in net worth, total: 500 (then reconciled to 482 in a breakdown)
- Selected opening balance sheet instrument stocks, Total economy:
  - Monetary gold and SDRs: 770
  - Currency and deposits: 1,482 (Rest of the world account 105) → 1,587
  - Debt securities: 1,263 (Rest of the world account 125) → 1,388
  - Loans: 1,384 (Rest of the world account 70) → 1,454
  - Equity and investment fund shares/units: 2,614 (Rest of the world account 345) → 2,959
  - Insurance, pension, and standardized guarantee schemes: 470 (Rest of the world account 26) → 496
  - Other accounts receivable/payable: 227 (Rest of the world account 134) → 361
- Selected closing balance sheet instrument stocks, Total economy:
  - Monetary gold and SDRs: 782
  - Currency and deposits: 1,571 (Rest of the world account 116) → 1,687
  - Debt securities: 1,389 (Rest of the world account 138) → 1,527
  - Loans: 1,462 (Rest of the world account 74) → 1,536
  - Equity and investment fund shares/units: 2,755 (Rest of the world account 360) → 3,115
  - Insurance, pension, and standardized guarantee schemes: 519 (Rest of the world account 26) → 545
  - Other accounts receivable/payable: 242 (Rest of the world account 144) → 386
- Changes in assets/liabilities (financial account, instrument-level totals):
  - Monetary gold and SDRs: Changes in assets 0; Changes in liabilities 1
  - Currency and deposits: Changes in assets –2; Changes in liabilities 11
  - Debt securities: Changes in assets 21; Changes in liabilities 9
  - Loans: Changes in assets 35; Changes in liabilities 4
  - Equity and investment fund shares: Changes in assets 14; Changes in liabilities 12
  - Financial derivatives and ESOs: Changes in assets 3; Changes in liabilities 0
  - Other accounts receivable/payable: Changes in assets –14; Changes in liabilities 10
  - Total changes in assets/liabilities: Assets 57; Liabilities 47
  - Net lending (+)/net borrowing (–) (from financial account): 10
- IIP by instrument (selected lines, opening → transactions → revaluation → closing):
  - Monetary gold and SDRs: 770 → 0 → 12 → 782
  - Currency and deposits: 116 → –2 → 0 → 114
  - Debt securities: 77 → 21 → 2 → 100
  - Loans: 17 → 35 → 0 → 52
  - Equity and investment fund shares: 203 → 14 → 1 → 218
  - Other accounts receivable/payable: 59 → –14 → 0 → 45
- Liabilities (selected lines, opening → transactions → revaluation → closing):
  - Monetary gold and SDRs: 0 → 1 → 0 → 1
  - Currency and deposits: 105 → 11 → 0 → 116
  - Debt securities: 125 → 9 → 4 → 138
  - Loans: 70 → 4 → 0 → 74
  - Equity and investment fund shares: 345 → 12 → 3 → 360
  - Other accounts receivable/payable: 134 → 10 → 0 → 144
- Net IIP (total): Opening 469; Transactions 10; Other changes in volume 0; Revaluation 8; Closing 487

*IMF, Chapter 2, Overview of the Integrated Framework.*

### Chapter 2 Overview of the Integrated Framework

### Chapter 2 Overview of the Integrated Framework

### A. Introduction and scope
- Chapter focus:
  - Describes how the international external accounts are an integral conceptual part of the broader system of national accounts.
  - Covers important aspects of statistics such as time series.
- References cited: "2008 2025 SNA, Chapter 23, Overview of the Integrated Framework, and Chapter 196, Summarizing and, Integrating and Balancing the Accounts." and "IMF, The System of Macroeconomic Accounts Statistics: An Overview, Pamphlet Series No. 56."

### B. Structure of the accounts — overall framework
- International external accounts summarize economic relationships between residents and nonresidents and comprise three interconnected elements:
  - (a) the international investment position (IIP) — a point-in-time statement showing the value of financial assets of residents that are claims on nonresidents or gold bullion held as reserve assets, and liabilities of residents to nonresidents;
  - (b) the balance of payments — a statement summarizing economic transactions between residents and nonresidents during a specific time period;
  - (c) the other changes in financial assets and liabilities accounts — a statement showing other flows (e.g., valuation changes, other changes in volume) that reconcile the balance of payments and the IIP for a specific period.
- Key integration point:
  - The balance of payments’ financial account, revaluations, and other changes in volume of financial assets and liabilities account together are accumulation accounts that explain differences between opening and closing IIP values.
  - The combination of the opening IIP, accumulation accounts, and the closing IIP is referred to as the integrated IIP.
- Functional relation to SNA:
  - Concepts are harmonized with the System of National Accounts (SNA) so data can be compared or aggregated with other macroeconomic statistics.
  - The external-accounts framework is the same as the SNA framework, but some accounts are not applicable in external accounts and the scope of accumulation accounts is limited to financial account and other changes in financial assets and liabilities accounts because the IIP relates only to external financial assets and liabilities.
- Usability:
  - Framework designed so core concepts can be used to develop additional data sets (see Annex 2.1 / Chapter 20).

### 2. International investment position (IIP)
- Definition and coverage:
  - The IIP is a statistical statement that shows at a point in time the value of: financial assets of residents that are claims on nonresidents or are gold bullion held as reserve assets; and liabilities of residents to nonresidents.
  - The difference between assets and liabilities is the net position in the IIP and represents either a net claim on or a net liability to the rest of the world.
- Relation to national balance sheet:
  - The IIP represents a subset of assets and liabilities in the national balance sheet; the national balance sheet additionally incorporates nonfinancial assets and financial positions between residents.
  - Gold bullion held as reserve asset is noted as the only financial asset without a corresponding liability.
- Integrated IIP statement:
  - The integrated IIP reconciles opening and closing IIP values through accumulation accounts (financial account transactions and other changes in financial assets and liabilities, including revaluations and other volume changes).
  - Table 2.1 (Integrated International Investment Position Statement) structure:
    - Beginning of period IIP
    - Accumulation accounts:
      - Transactions from BOP’s financial account
      - Other changes in financial assets and liabilities accounts:
        - Revaluations
        - Other changes in volume
        - Total
        - Exchange rate changes
        - Other price changes
        - Total
        - Of which: debt cancellation write-offs *
        - Of which: reclassifications *
    - End of period IIP
    - Note: Standard components listed in Appendix 14; * Encouraged items.
- Classification:
  - Highest classification level for IIP, financial account, and other changes account is the functional classification (covered in Chapter 6): direct investment, portfolio investment, financial derivatives (other than reserves) and employee stock options, other investment, and reserve assets.
  - SNA records financial account activity by type of instrument alone; direct investment is a memorandum item to the SNA instrument classification (see Chapter 5 for financial instruments).

### 3. Balance of payments (BOP)
- Definition and composition:
  - The balance of payments is a statistical statement summarizing transactions between residents and nonresidents during a period.
  - Consists of three main accounts:
    - Current account (goods and services account, primary earned income account, secondary transfer income account)
    - Capital account
    - Financial account
- Double-entry accounting:
  - Under double-entry accounting, each transaction is recorded as two equal and opposite entries (credits and debits).
  - Credits/revenues and debits/expenditures terminology is used specifically in the current and capital accounts.
- Current account details:
  - Shows transactions in goods, services, primary earned income, and secondary transfer income between residents and nonresidents.
  - Components discussed in later chapters:
    - Chapter 10: goods and services account.
    - Chapter 11: services account.
    - Chapter 121: primary earned income account (amounts payable and receivable for providing temporary use of labor, financial resources, or non-produced nonfinancial assets).
    - Chapter 12 13: secondary transfer income account (redistribution of income such as personal transfers and current international assistance).
  - The current account balance equals the difference between exports and income receivable and imports and income payable; it equals the saving-investment gap for the economy (see Chapter 1419).
- Capital account details:
  - Records credit and debit entries for nonproduced nonfinancial assets and capital transfers between residents and nonresidents (e.g., land sold to embassies, sales of leases and licenses, capital transfers).
  - Capital account balance = disposals of nonproduced nonfinancial assets and capital transfers receivable less acquisitions and capital transfers payable (described in Chapter 1314).
- Financial account details:
  - Shows net acquisition and disposal of financial assets and liabilities (described in Chapter 8).
  - Financial account transactions appear in the BOP and, because of effects on stocks, in the accumulation accounts and integrated IIP.
  - Financial account balance = net acquisition of financial assets less net incurrence of liabilities resulting from transactions between residents and nonresidents.
- Relationship among accounts:
  - Sum of current and capital account balances = net lending (surplus) or net borrowing (deficit) of the economy with the rest of the world; conceptually equal to the net financial account balance.
  - Financial account plus the other changes account (jointly referred to as accumulation accounts) explain the change in the IIP between beginning- and end-periods.

Box 2.1 — Double-entry basis of BOP statistics
- Recording for individual transactions:
  - Each transaction recorded as two equal and opposite entries; each party records a matching credit and debit.
  - 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 (transaction amounts preserved):
  - Sale of goods to a nonresident for 100 in currency (for resident seller):
    - Exports 100 (CR.)
    - Currency 100 (DR.—Increase in financial assets)
  - Sale of shares for 50 in currency (for resident seller):
    - Shares and other equity 50 (CR.—Reduction in financial assets)
    - Currency 50 (DR.—Increase in financial assets)
  - Borrower receives a loan of 70 in cash (for resident borrower):
    - Loan 70 (CR.—Increase in liabilities)
    - Currency 70 (DR.—Increase in financial assets)
  - Humanitarian aid (export of goods) of 100 (for exporting economy):
    - Exports 100 (CR.)
    - Current transfer 100 (DR.)
- Aggregate recording:
  - Current and capital account entries are totals (gross terms).
  - Financial account entries show net values for each category/instrument: net transactions in financial assets (acquisition less reduction) and net transactions in liabilities (incurrence less reduction).
  - Due to two-entry nature, conceptually sum of credits minus debits is zero; measurement problems cause discrepancies in practice.
  - Presentation options:
    - Column headings conveying nature of entries (credits/revenues, debits/expenditures, net acquisition of financial assets, net incurrence of liabilities) — considered easily understood.
    - Alternative: credits positive, debits negative — useful for calculating balances but requires more explanation.
  - In the SNA presentation, a credit/revenue entry in BOP current account for the compiling economy is a "useexpenditure" by the rest of the world; a debit/expenditure entry is a provision of "resourcesrevenues" in the SNA.

### Gross and net recording
- Current and capital accounts: transactions shown in gross terms.
- Financial account: transactions shown in net terms, separately for assets and liabilities.
- For resources that enter and leave an economy (e.g., re-exported goods, funds in transit), presenting net flows can be analytically useful.

### 4. Accumulation accounts
- SNA framework:
  - Accumulation accounts record flows that affect balance-sheet entries at start and end of the period.
  - Four accumulation accounts in SNA: the capital account, the financial account, the revaluation account, and the other change in the volume of assets account (paragraph 1.xx, 2025 SNA).
- External-accounts framework (as applied to IIP):
  - Accumulation accounts explain changes between opening and closing IIP (external balance sheet).
  - Accumulation accounts for external accounts comprise:
    - The capital account,
    - Balance of payments’ financial account,
    - Other changes in financial assets and liabilities accounts.
  - These accounts show accumulation (acquisition and disposal) of financial assets and liabilities, financing through transactions, and other changes that affect them, thereby explaining changes between opening and closing IIP/balance sheets.
  - Distinction: current account is concerned with resource flows for the current period; accumulation accounts relate to provision and financing of assets and liabilities affecting future periods.

*IMF, Chapter 2, Overview of the Integrated Framework.*

### 2.21  The financial account shows the net acquisition of financial assets and net incurrence of liabilities

### 2.21  The financial account shows the net acquisition of financial assets and net incurrence of liabilities

### Definition and scope of the financial account and the other changes in financial assets and liabilities account
- The financial account shows the net acquisition of financial assets and net incurrence of liabilities during the specified period.
- The other changes in financial assets and liabilities account covers other changes than balance of payments transactions, i.e.:
  - revaluations (due to exchange rate changes and other price changes);
  - other changes in volume (e.g., write-offs and cancellations, reclassifications);
  - revaluation due to exchange rate changes; and
  - other revaluationprice changes.
- Chapter 9 contains a further description of the other changes in financial assets and liabilities account.

### Integrated recording of positions and transactions (Chapter 2, paragraphs 2.22–2.23)
- Recording is based on the double-entry system of accounting, as set out in Box 2.1.
- Consistent reporting by the two resident and the nonresident parties to each financial claim, transaction, and other flow is required.
- Consistency promotes comparability across economies and supports the use of counterpart data for data sources and data validation.

### Net errors and omissions / Statistical discrepancy (Chapter 2, paragraphs 2.24–2.26)
- Although the balance of payments accounts are, in principle, balanced, imbalances arise from imperfections in source data and compilation.
- The imbalance is labeled net errors and omissionsstatistical discrepancy and should be identified separately in published data; it should not be included indistinguishably in other items.
- Net errors and omissionsstatistical discrepancy are derived residually as net lending/net borrowing and can be derived from:
  - the financial account minus the same item derived from the current and capital accounts.
- Interpretations of a positive value of net errors and omissionsstatistical discrepancy:
  - (a) the value of credits/revenues in the current and capital accounts is too low; and/or
  - (b) the value of debits/expenditures in the current and capital accounts is too high; and/or
  - (c) the value of net increases inacquisition of assets in the financial account is too high; and/or
  - (d) the value of net increases inincurrence of liabilities in the financial account is too low.
- For a negative value of net errors and omissionsstatistical discrepancy, these tendencies are reversed.
- Analysis guidance for compilers:
  - The size and trends of net errors and omissionsstatistical discrepancy should be analyzed by compilers to help identify data problems (e.g., coverage or misreporting).
  - A consistent sign indicates potential bias in components; a persistent positive value suggests understated or omitted credit entries or overstated debit entries; a volatile pattern may suggest timing problems.
  - Statistical discrepancynet errors and omissions are an incomplete measure because errors and omissions in opposite directions can offset.
  - The term statistical discrepancynet errors and omissions should not be interpreted as meaning errors by compilers; incomplete data sources and poor quality reporting are common causes.
- Assessment considerations:
  - A large or volatile value of net errors and omissionsstatistical discrepancy hampers interpretation of BOP statistics.
  - No universal guideline on acceptable size; compilers can assess discrepancy relative to items such as GDP, positions data, and gross flows.
  - Statistical discrepancies also can arise in the IIP statement when independently measured components (opening values, net transactions, net other changes) generate mismatches.
- Numerical example illustrating residual derivation:
  - If net lending/net borrowing measured from the current and capital accounts is 29, while net lending/net borrowing measured from the financial account is 31, then net errors and omissionsstatistical discrepancy is +2.

### Linkages within the international external accounts (Chapter 2, paragraph 2.27)
- Key linkages:
  - (a) End-of-period IIP = beginning-of-period IIP + balance of payments financial account transactions + other flowschanges in financial assets and liabilities.
  - (b) The current, capital, and financial account entries are in balance, in principle.
  - (c) The balance on the sum of the current and capital accounts = the balance on the financial account (net lending/net borrowing).
  - (d) The current account balance = financial account balance less capital account balance.
  - (e) Financial assets and liabilities generally give rise to investment income; income rates of return = income ÷ corresponding stock of assets or liabilities (rates may also account for holding gains or losses for some analysis).
- The harmonization of macroeconomic statistical guidelines allows comparison of residents’ transactions and positions with nonresidents to transactions and positions between residents:
  - (a) international external financing can be compared with domestic lending and borrowing; and
  - (b) the IIP can be compared with the national balance sheet and with monetary and financial statistics.

### Linkages and consistency with other macroeconomic data sets (Chapter 2, paragraphs 2.29–2.34-1)
- The international external accounts correspond to the rest of the world accounts of the SNA but are expressed from the perspective of resident sectors (SNA rest of the world is from nonresident perspective).
- Equivalences and differences:
  - SNA items equivalent to balance of payments items include exports and imports of goods and services; primary earned income; secondary transfer income; current external balance; balance on the capital account; and net lending/net borrowing of the rest of the world account.
  - National accounts use instrument classification; balance of payments financial account and IIP are presented by functional categories.
- Monetary and financial statistics linkage:
  - Balance sheets for deposit-taking and other financial corporations can be compared with relevant parts of the IIP:
    - foreign assets and liabilities of the central bank; and
    - foreign assets and liabilities of other deposit-taking corporations.
  - Because the IIP is organized primarily by functional category, instrument and sector data must be combined to link with monetary and financial statistics.
  - Direct investment of the central bank and other deposit-taking corporations is shown as a supplementary item where relevant to derive aggregates consistent with monetary and financial statistics.
  - Adjustments may be needed for deposit-taking corporations whose liabilities are excluded from broad money (e.g., offshore banks) or other corporations included in broad money (such as money market funds).
  - Balance of payments transactions for a period may differ from transactions in foreign assets and liabilities in monetary statistics to the extent that balance of payments statistics exclude transactions in foreign assets and liabilities between residents.
- Government finance statistics linkage:
  - Items that should be consistent with international external accounts include:
    - interest payable on general government external debt;
    - interest or dividends receivable on general government holdings of external assets;
    - grants or other transfers by general government to nonresidents;
    - grants or other transfers to general government from nonresidents;
    - net external financing; and
    - external assets and liabilities.
  - Direct investment of general government is shown as a supplementary item where relevant.
- External debt statistics linkage (paragraphs 2.34-1 and Table 2.2):
  - In the IIP, positions are generally valued at market value on the balance sheet reporting date (except nonnegotiable instruments such as loans, deposits, and other accounts receivable/payable which are valued at nominal value).
  - The EDS Guide recommends debt instruments be valued at nominal value and debt securities at market value.
  - Gross external debt position (with debt securities at market value) equals debt liabilities in the IIP statement (i.e., total IIP liabilities excluding all equity and investment fund shares and financial derivatives and employee stock options (ESOs)).
  - Table 2.2 corresponding items (liabilities):
    - DI: Intercompany lending = Direct investment—debt instruments
    - Debt securities = Portfolio investment—debt securities
    - SDR allocations = Other investments/debt instruments—SDR allocations
    - Currency and deposits = Other investments/debt instruments—currency and deposits
    - Loans = Other investments/debt instruments--loans
    - Other debt liabilities = Other investments/debt instruments—insurance, pension, and standardized guarantee schemes
    - Trade credit and advances = Other investments/debt instruments—trade credit and advances
    - Other debt liabilities = Other investments/debt instruments—other accounts receivable/payable-other

### Numerical example (Chapter 2, paragraphs 2.35–2.36 and Table 2.1 23)
- The numerical overview uses SNA-based data to illustrate interrelationships. Selected figures from Table 2.1 23:
  - Current account (credits/revenues, debits/expenditures, balance):
    - Goods and services: 540, 499, 41
    - Goods: 462, 392, 70
    - Services: 78, 107, –29
    - Primary Earned income: 50, 40, 10
    - Compensation Remuneration of employees: 6, 2
    - Interest: 13, 21
    - Distributed income of corporations: 17, 17
    - Reinvested earnings: 14, 0
    - Rent: 0, 0
    - Secondary Transfer 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
    - 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
  - Financial account (by functional category) (Net acquisition of financial assets, Net incurrence of 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 omissionsStatistical discrepancy: 0
  - Accumulation Accounts — International investment position (Opening position, Transactions (fin. acc.), Other changes in financial assets and liabilities accounts, Closing position; Revaluations; Other changes in volume):
    - Assets (by functional category):
      - Direct investment: 78, 8, 1, 0, 87
      - Portfolio investment: 190, 18, 2, 0, 210
      - Financial derivatives (other than reserves) and ESOs: 7, 3, 0, 0, 10
      - Other investment: 166, 20, 0, 0, 186
      - Reserve assets: 833, 8, 12, 0, 853
      - Total assets: 1,274, 57, 15, 0, 1,346
    - Liabilities (by functional category):
      - Direct investment: 210, 11, 2, 0, 223
      - Portfolio investment: 300, 14, 5, 0, 319
      - Financial derivatives (other than reserves) and ESOs: 0, 0, 0, 0, 0
      - Other investment: 295, 22, 0, 0, 317
      - Total liabilities: 805, 47, 7, 0, 859
    - Net IIP: 469, 10, 8, 0, 487
- Note: ESO = employee stock option.
- The numerical example illustrates that the international external accounts data are from the perspective of resident units while the SNA rest of the world is from the perspective of nonresidents (e.g., current account surplus of 13 is presented as –13 for the rest of the world; closing assets of 1,346 in IIP are shown as liabilities of 1,346 of the rest of the world in the SNA).

*Chapter 2, Overview of the Integrated Framework (BPM7 draft chapter excerpt).*

### 3.3  Statistical techniques—Statistical techniques employed conform

### 3.3 Statistical techniques—Statistical techniques employed conform

### Data quality and statistical practice (sections 3.3–5.3)
- 3.3 Statistical techniques—Statistical techniques employed conform to sound statistical procedures.
- 3.4 Assessment and validation of intermediate data and statistical outputs—Intermediate 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.
- 4.1 Periodicity and timeliness—Periodicity and timeliness follow internationally accepted dissemination standards.
- 4 Serviceability Statistics, with adequate periodicity and timeliness, are consistent and follow a predictable revisions policy.
- 4.2 Consistency—Statistics are consistent within the data set, over time, and with major data sets.
- 4.3 Revision policy and practice—Data revisions follow a regular and publicized procedure.
- 5 Accessibility Data and metadata are easily available and assistance to users is adequate.
  - 5.1 Data accessibility—Statistics are presented in a clear and understandable manner, forms of dissemination are adequate, and statistics are made available on an impartial basis.
  - 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.

### Metadata, dissemination standards, and data quality (section 1)
- 2.37 Metadata are systematic, descriptive information 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 the publication of statistics.
- 2.38 Good dissemination practices include provision of metadata, predictable release schedule, availability of publications, and identification of internal government access to statistics before public release. International guidelines include the IMF’s Enhanced General Data Dissemination System, Special Data Dissemination Standard, and Special Data Dissemination Standard Plus.
- 2.39 The IMF’s Data Quality Assessment Framework identifies aspects of data quality, including definitions and sources of data as well as dissemination and institutional aspects. Box 2.2 shows the broadest headings of the framework. Chapter 20, Section VII discusses the Framework for Measuring Alignment with Economic Accounting Statistical Standards and refers to the IMF’s DQAF.

### Time series practices (section 2; reference to Quarterly National Accounts Manual)
- 2.40 Good practices for time series in international external accounts include:
  - (a) Consistency over time in concepts and compilation practices to minimize “breaks” and “steps” in the series—where changes in definitions and techniques are implemented, they should be clearly identified to data users and the effect should be quantified, where practical, preferably with an overlapping period;
  - (b) A transparent way of handling of revisions—revisions to data are necessary to account for revised methods and more recent information. The revision of data should be dealt with through a predictable and documented policy. The causes and sizes of significant individual revisions should be identified. Revision studies should be made to identify the size and any bias of past revisions. This will help to refine preliminary data and to define the optimum revision cycle that is largely driven by the availability of major data sources; and
  - (c) Consistency of available annual, quarterly, and monthly data—the monthly values should sum to the corresponding quarterly values, which should sum to the corresponding annual values.
- 2.41 Seasonal adjustment of monthly and quarterly data is potentially useful for time series analysis and compilation; some international external accounts items, especially in the financial account, may not be suitable for seasonal adjustment because of high irregularity associated with large, one-time transactions. Refer to Chapter 7, Quarterly National Accounts Manual for main principles of seasonal adjustment procedures.

### Satellite accounts and supplemental presentations (sections 2.42–2.43)
- 2.42 The Manual shows a standard presentation designed to be used flexibly and to support many kinds of analysis; satellite accounts and other supplemental presentations are encouraged and based on circumstances in each economy; they are not included in standard components or memorandum items and may include data from other sources not necessarily obtained from the international accounts compilation system.
- 2.43 Satellite accounts provide a framework linked to the central accounts to focus on specific fields (examples for national accounts: environment, tourism, nonprofit institutions). International accounts have more detailed presentations for direct investment, portfolio investment, external debt, remittances, tourism, and reserves. Use of the basic framework as a starting point increases ability to relate the topic to other aspects of the economy while maintaining international comparability. Supplementary items may be smaller-scale than full satellite accounts.

### Key numerical excerpts from the Overview of Integrated Economic Accounts (Annex 2.21 / Table excerpts)
- Imports of goods and services 499
  - Imports of goods 392
  - Imports of services 107
- Exports of goods and services 540
  - Exports of goods 462
  - Exports of services 78
- Output 3,604
- Intermediate consumption 1,883
- Taxes on products 141
- Subsidies on products (–) –8
- Value added, gross/Gross domestic product 1,331 94 126 155 15 1,854
  - (Total reported as) 1,854
- Consumption of fixed capital 157 12 27 23 3 222
  - (Total reported as) 222
- Value added, net/Net domestic product 1,174 82 99 132 12 1,632
  - (Total reported as) 1,632
- Compensation of employees 986 44 98 11 11 1,150
  - Wages and salaries 841 29 63 11 6 950
  - Employers’ social contributions 145 15 35 0 5 200
- Operating surplus, net 135 34 0 69 0 238
  - (Total reported as) 238
- Mixed income, net 53
  - (Total reported as) 53
- 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
  - Rent 31 0 7 27 0 65
- Balance of primary income, net/National income, net 97 15 171 1,358 1 1,642
  - (Total reported as) 1,642
- 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
  - 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
  - (Total reported as) 1,604
- Final consumption expenditure 352 1,015 32 1,399
  - (Total reported as) 1,399
- Gross capital formation 308 8 38 55 5 414
  - (Total reported as) 414
- Consumption of fixed capital –157 –12 –27 –23 –3 –222
  - (Total reported as) –222
- Changes in inventories 26 0 0 2 0 28
  - (Total reported as) 28
- Net lending (+) / net borrowing (–) –56 –1 –103 174 –4 10 –10 0
- Financial account: Net acquisition of financial assets 83 172 –10 189 2 436 47 483
  - 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
- Net acquisition of liabilities 139 173 93 15 6 426 57 483
  - 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
  - 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
- Other changes in the volume of assets: 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
- Revaluation account: Changes in 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
  - Debt securities 3 30 6 1 40 4 44
  - Equity and investment fund shares/units 5 16 10 1 32 3 35

*Source: Chapter 2 Overview of the Integrated Framework, IMF.*

### Chapter 2 Overview of the Integrated Framework

### Chapter 2 Overview of the Integrated Framework

### Overview and key aggregates
- Opening balance sheet, Total economy:
  - Nonfinancial assets: 4,621
  - Financial assets/liabilities: 8,231 (plus Rest of the world account 805) → Total 9,036
  - Net worth: 4,621
- Closing balance sheet, Total economy:
  - Nonfinancial assets: 5,103
  - Financial assets/liabilities: 8,754 (plus Rest of the world account 859) → Total 9,613
  - Net worth: 5,103
- Total changes, Total economy:
  - Nonfinancial assets: 482
  - Financial assets/liabilities: 523 (changes) → 577 (reported in another table)
  - Changes in net worth, total: 500 (then reconciled to 482 in a breakdown)

### Stocks and changes by sector (selected instrument-level figures)
- Opening balance sheet (selected instruments, Total economy):
  - Monetary gold and SDRs: 770
  - Currency and deposits: 1,482 (Rest of the world account 105) → 1,587
  - Debt securities: 1,263 (Rest of the world account 125) → 1,388
  - Loans: 1,384 (Rest of the world account 70) → 1,454
  - Equity and investment fund shares/units: 2,614 (Rest of the world account 345) → 2,959
  - Insurance, pension, and standardized guarantee schemes: 470 (Rest of the world account 26) → 496
  - Other accounts receivable/payable: 227 (Rest of the world account 134) → 361
- Closing balance sheet (selected instruments, Total economy):
  - Monetary gold and SDRs: 782 (Rest of the world account 1) → 783? [table shows 782 and liabilities 1; overall assets 782]
  - Currency and deposits: 1,571 (Rest of the world account 116) → 1,687
  - Debt securities: 1,389 (Rest of the world account 138) → 1,527
  - Loans: 1,462 (Rest of the world account 74) → 1,536
  - Equity and investment fund shares/units: 2,755 (Rest of the world account 360) → 3,115
  - Insurance, pension, and standardized guarantee schemes: 519 (Rest of the world account 26) → 545
  - Other accounts receivable/payable: 242 (Rest of the world account 144) → 386

### Changes in assets, liabilities, and net worth (selected reconciliations)
- Changes in net worth due to other changes in volume of assets: 14, –1, –2, –1, 0, 10 (sector breakdown)
- Changes in net worth due to nominal holding gains/losses (sector breakdown): 134, 10, 38, 96, 10 → total 288; after adjustments –8 → 280
- Neutral and real holding gains/losses:
  - Neutral holding gains/losses: 82, 6, 27, 87, 6 → total 208; Rest of the world –10 → 198
  - Real holding gains/losses: 52, 4, 11, 9, 4 → total 80; Rest of the world 2 → 82
- Other changes in volume of assets (sector breakdown): 14, –1, –2, –1, 0 → total 10

### Financial account (by instrument) — changes in assets and liabilities (international accounts)
- Monetary gold and SDRs: Changes in assets 0; Changes in liabilities 1
- Currency and deposits: Changes in assets –2; Changes in liabilities 11
- Debt securities: Changes in assets 21; Changes in liabilities 9
- Loans: Changes in assets 35; Changes in liabilities 4
- Equity and investment fund shares: Changes in assets 14; Changes in liabilities 12
- Insurance, pension, and standardized guarantee schemes: Changes in assets 0; Changes in liabilities 0
- Financial derivatives and ESOs: Changes in assets 3; Changes in liabilities 0
- Other accounts receivable/payable: Changes in assets –14; Changes in liabilities 10
- Total changes in assets/liabilities: Assets 57; Liabilities 47
- Net lending (+)/net borrowing (–) (from financial account): 10

### International investment position (IIP) by instrument (opening, transactions, other changes, revaluation, closing)
- Assets (instrument split) — totals:
  - Opening position: 1,274
  - Transactions (fin. acc.): 57
  - Other changes in volume: 0
  - Revaluation: 15
  - Closing position: 1,346
- Selected IIP instrument lines (opening → transactions → revaluation → closing):
  - Monetary gold and SDRs: 770 → 0 → 12 → 782
  - Currency and deposits: 116 → –2 → 0 → 114
  - Debt securities: 77 → 21 → 2 → 100
  - Loans: 17 → 35 → 0 → 52
  - Equity and investment fund shares: 203 → 14 → 1 → 218
  - Insurance, pension, and standardized guarantee schemes: 25 → 0 → 0 → 25
  - Financial derivatives and ESOs: 7 → 3 → 0 → 10
  - Other accounts receivable/payable: 59 → –14 → 0 → 45
- Liabilities (instrument split) — totals:
  - Opening position: 805
  - Transactions (fin. acc.): 47
  - Other changes in volume: 0
  - Revaluation: 7
  - Closing position: 859
- Selected IIP liability lines (opening → transactions → revaluation → closing):
  - Monetary gold and SDRs: 0 → 1 → 0 → 1
  - Currency and deposits: 105 → 11 → 0 → 116
  - Debt securities: 125 → 9 → 4 → 138
  - Loans: 70 → 4 → 0 → 74
  - Equity and investment fund shares: 345 → 12 → 3 → 360
  - Other accounts receivable/payable: 134 → 10 → 0 → 144
- Net IIP (total): Opening 469; Transactions 10; Other changes in volume 0; Revaluation 8; Closing 487

### Conversion from instrument split to functional categories (selected totals)
- Financial account — Assets (instrument split) converted to functional categories, total changes:
  - DI PI FD OI RA Total: 8 18 3 20 8 57
- Financial account — Liabilities (instrument split) converted to functional categories, total changes:
  - DI PI FD OI RA Total: 11 14 0 22 0 47
- IIP (opening) — Assets (instrument split) by functional category, totals:
  - DI PI FD OI RA Total: 78 190 7 166 833 1,274
- IIP (opening) — Liabilities (instrument split) by functional category, totals:
  - DI PI FD OI RA Total: 210 300 0 295 0 805
- Revaluation — Assets (instrument split) by functional category, totals:
  - DI PI FD OI RA Total: 1 2 0 0 12 15
- Revaluation — Liabilities (instrument split) by functional category, totals:
  - DI PI FD OI RA Total: 2 5 0 0 0 7
- IIP (closing) — Assets (instrument split) by functional category, totals:
  - DI PI FD OI RA Total: 87 210 10 186 853 1,346
- IIP (closing) — Liabilities (instrument split) by functional category, totals:
  - DI PI FD OI RA Total: 223 319 0 317 0 859

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_Source: https://www.imf.org/-/media/files/data/statistics/bmp7/draft-chapters/bpm7-ch2.pdf_