The Capital and financial account records :: the borrowing, lending, sales and purchases of assets between Australia and the rest of the world.
as well as ==Australia’s net change in ownership of assets and liabilities==.
Capital account:
The capital account consists of two main components.
Capital transfers
mainly in the form of “conditional” foreign aid grants
and debt forgiveness
the purchases and sale of non-produced, non-financial assets
mainly intellectual property rights such as
patents
copyrights
trademarks
franchises
Financial account:
The financial account shows :: Australia’s transactions in foreign financial assets and liabilities.
It (financial account) is categorised by the type of investment (5 main categories):
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direct investment
portfolio investment:
financial derivatives
reserve assets
other investment
direct investment
foreign financial transactions to fund new investment in Australia or overseas (>10%)
loans
equities/shares
portfolio investment
Portfolio investment refers to the buying of land, shares and other marketable securities in existing companies.
financial derivatives
category of complex financial assets
the value of which is derived from the performance of specific assets
i.e. Oil & Gold derivatives
reserve assets
Reserve assets refer to :: foreign financial assets that are available to and controlled by the central authorities for financing or regulating payment imbalances.
