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11.25 The difference between the concepts of gross assets and liabilities on the one hand, and Australian investment abroad and foreign investment in Australia on the other, centres on the treatment of direct investment claims and liabilities between enterprises in a direct investment relationship. The concepts of gross assets and liabilities are needed for reconciliation with SNA93-based statistics, while Australian investment abroad and foreign investment in Australia (both net concepts as described below) are used in international investment position-based statistics. To arrive at net Australian investment abroad from Australia’s gross assets (claims on the rest of the world, monetary gold and Special Drawing Rights), it is necessary to:
A similar adjustment is necessary to arrive at foreign investment in Australia from Australia’s gross liabilities. This is referred to as the direct investment adjustment (shown in tables 28 and 29 of Cat. no. 5302.0). The derivations of Australian investment abroad and foreign investment in Australia are illustrated in table 11.6 which shows, respectively, the total foreign assets and liabilities, the components of the direct investment adjustment, and Australian investment abroad and foreign investment in Australia.
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