Cover IMF Working Papers
Buy Book in Print
Recording Interest Income in the Balance of Payments
Author:
Mr. Peter Harper null

Search for other papers by Mr. Peter Harper in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 1995: Issue 071
Language:
English
Publication Date:
01 Jul 1995
DOI:
https://doi.org/10.5089/9781451849202.001
ISBN:
9781451849202
ISSN:
1018-5941
Pages:
26
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
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (1.3 MB) Download Epub
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.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund