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11.1 The financial account covers all transactions, including the creation and liquidation of financial claims, associated with change of ownership in foreign financial assets and liabilities during a period. On the other hand, the international investment position is the balance sheet of the stock of foreign financial assets and liabilities at a point in time. The international investment position may be viewed more broadly as a reconciliation statement, showing the levels of Australia’s international assets and liabilities at two successive points in time and the components of change, namely financial transactions (as recorded in the balance of payments financial account) and non-transaction changes (price changes, exchange rate changes and other adjustments). The relationship between the financial account and the international investment position is described in Chapter 2.