5331.0 - Balance of Payments and International Investment Position, Australia, Concepts, Sources and Methods, 1998  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 22/09/1998   
   Page tools: Print Print Page Print all pages in this productPrint All  
Contents >> Chapter 7. Current account - services >> Other business services

7.25 Other business services cover various categories, other than those elsewhere defined, of service transactions between residents and non-residents. They include: merchanting credits (see box 7.7); other trade-related services; operational leasing services (see box 7.8); legal, accounting, management consulting and public relations services; advertising, market research and public opinion polling services; research and development services; architectural, engineering and other technical services; agricultural, mining and on-site processing services; other business services; and services between affiliated enterprises that are not included elsewhere.

Merchanting services credits involve the purchase of a good located abroad by a resident of the compiling economy from a non-resident and the subsequent resale of the good abroad to another non-resident; during the process the good does not enter or leave the compiling economy. The difference between the value of the goods when acquired and when sold is recorded as the value of the merchanting service provided. If the commodities are not resold by the merchant in the same accounting period, an import of goods is recorded by the compiling economy in the period of purchase, and a negative import entry is recorded in the period of sale. By definition there are no merchanting services debits.

Operational leasing covers resident/non-resident leasing and charters of ships, aircraft and other transportation equipment.

Leases of ships and aircraft for limited periods (such as a voyage charter) for the carriage of passengers or freight, where the lessee does not operate the craft, are not regarded as leases but as the acquisition of either freight or passenger services included in transportation (see paragraph 7.6).

Excluded from operational lease services are financial leasing and leasing of land, buildings and other real estate (included in financial transactions), leasing of telecommunications equipment (included in communications services), and car rentals to foreign travellers (included in travel).

Previous PageNext Page