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- Title
Foreign direct investment measurement issues.
- Abstract
The article reports on foreign direct investments. Direct investment income is the return that non-resident investors receive on their investment, i.e. the profits of the respective branch or subsidiary. The Balance of Payments Manual states that this should exclude capital gains or losses which arise from the revaluation of assets. Therefore, due to the underestimation of stocks and the overestimation of income, rates of return on both direct investment assets and liabilities will be inflated. The move to International Accounting Standards and in particular the emphasis on recording economically meaningful valuations in financial reporting may result in better coverage of direct investment assets and liabilities at market or fair value.
- Subjects
FOREIGN investments; ACCOUNTS receivable; BANK deposits; INVESTMENT income; ASSETS (Accounting); INVESTMENT interest
- Publication
Bank of England Quarterly Bulletin, 2004, Vol 44, Issue 4, p492
- ISSN
0005-5166
- Publication type
Article