Recording Interest Income in the Balance of Payments

Peter Harper

No 1995/071, IMF Working Papers from International Monetary Fund

Abstract: In the balance of payments, as well as the national accounts, income refers to the use of factors of production. Accordingly, income should be recorded in the balance of payments during the period or periods in which the economic benefits arising from the use of a factor of production are enjoyed by the user—that is, on an accrual basis. This paper discusses: (1) the theoretical implications of using the accrual basis for recording interest income, including the nature of entries necessary to offset income accrued but not paid and the calculation of accrued interest; and (2) the practical aspects of measuring interest on this basis.

Keywords: WP; income; interest rate; yield; payment; balance of payments; interest income; coupon payment; accrued interest; market value; yield analysis; capital gain; Personal income; Interest payments; Securities; Accrual accounting; Fiscal accounting and reporting (search for similar items in EconPapers)
Pages: 26
Date: 1995-07-01
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=1113 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:1995/071

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().