In China's foreign direct investment, the borrower indicates the capital remitted by China's foreign direct investment and the domestic capital outflow between the parent company and its subsidiaries; Lenders indicate the withdrawal and liquidation of China, as well as the inflow of external capital between the parent company and its subsidiaries.
Similarly, in foreign direct investment in China, the lender refers to the investment of foreign investors in establishing foreign-invested enterprises in China, including equity capital, income reinvestment and other capital; The borrower indicated that the divestment and liquidation funds of foreign enterprises were remitted out of China.
The balance of payments is an integral part of the basic accounting table in the national economic accounting system. A balance sheet that reflects all the economic exchanges between a country (or region) and foreign countries in a certain period of time. It is a systematic record of the actual dynamics of trade, non-trade, capital exchange and reserve assets in the process of economic and technological exchanges between a country and other countries, and it is an important tool for balance of payments accounting. It can comprehensively reflect a country's balance of payments, balance of payments structure and changes in reserve assets, and provide a basis for formulating foreign economic policies, analyzing basic economic factors affecting balance of payments, and taking corresponding control measures. According to the International Monetary Fund's Balance of Payments Manual (fifth edition), the standard composition of balance of payments includes two basic parts: current account, capital account and financial account.
It is an important tool for balance of payments accounting. Through the balance of payments statement, we can comprehensively reflect a country's balance of payments situation, balance of payments structure and changes in reserve assets, provide a basis for formulating foreign economic policies, analyzing basic economic factors affecting balance of payments, and taking corresponding control measures, and provide basic information for other external parts of accounting statements.
Accounting requirements
The balance of payments is based on the double-entry bookkeeping principle of "if you borrow, you must have a loan, and if you have a loan, you must be even", and systematically record every international economic transaction. This bookkeeping principle requires that each transaction should be recorded by both the borrower and the lender, and the lender should record the decrease of assets and the increase of liabilities; Debit records the increase of assets and the decrease of liabilities.
current deposit account
The current account mainly reflects the actual resource transfer between one country and other countries, and it is the most important item in the balance of payments. Current account includes goods (trade), services (intangible trade), income and unilateral transfer (current transfer). The current account surplus indicates that the country is a net lender, while the current account deficit indicates that the country is a net borrower.
capital and financial account
Capital and financial projects reflect international capital flows, including long-term or short-term capital outflows and capital inflows. It is the second largest item in the balance of payments.
Capital account includes capital transfer and purchase or sale of unproductive and non-financial assets. The former is mainly investment donation and debt cancellation; The latter is mainly to buy or sell land and intangible assets (patents, copyrights, trademarks, etc. ).
Financial accounts include direct investment, securities investment (indirect investment) and other investments (including international credit and advance payment, etc. ).
Net error and omission
In order to make the total debit of the balance of payments equal to the total credit, the watchmaker artificially sets this item in the balance sheet to offset the net debit balance or the net credit balance.
Reserves and related items
Reserves and related items include foreign exchange, gold and allocated special drawing rights.
Special Drawing Rights (SDR) is a new international reserve asset created by the International Monetary Fund in the form of international financial cooperation. A unit of account allocated by the International Monetary Fund (IMF) to member countries according to their contributions. It was officially released by the IMF at 1970. The SDR allocated by member countries can be used as reserve assets to make up the balance of payments deficit and repay the loan of the International Monetary Fund. Also known as "paper gold".
computing formula
Total balance of payments = current account balance+capital and financial account balance+net balance error and omission
Total balance of payments-change in reserve assets =0
Each difference = the credit figure of the project minus the debit figure.