Valuation of Assets and Liabilities in FDI Position Data

• Pages: 43-43

Contenidos

• OECD countries.
• Other countries.

Page 43

7.1 In principle, all external financial assets and liabilities should be valued at the market prices prevailing on the date they are recorded in the FDI statistics. However, there are some recognized departures from the market-price principle. For direct investment, values recorded in the balance sheets of direct investment enterprises (book values) are often used to determine the value of the stock of direct investment. If these balance-sheet values are recorded on the basis of market prices prevailing on the balance sheet date, such values are generally in accordance with the market-valuation principle. However, if balance sheet values are based on historical cost or on interim, but not current, revaluations, such balance-sheet values do not conform with the market-valuation principle.

7.2 Table 7.1 shows the primary method used in 2001 and 1997 to value equity capital assets and liabilities in the inward FDI...