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3.12. The international investment position measures Australia’s stock of external financial assets and liabilities, whereas the balance of payments financial account measures transactions in these assets and liabilities. Hence the classifications used in the financial account and international investment position need to be essentially the same.

3.13. Table 3.3 outlines the standard classification of the international investment position statement. While this statement may sometimes only refer to the stock of financial assets and liabilities at the end of any period, it is more useful to show the complete reconciliation statement which shows the opening and closing positions and the change in position due to financial transactions and other changes. This has been done in table 3.3, which follows the BPM5 presentation.

3.14. The components of changes in position in table 3.3 include financial transactions (recorded in the financial account of the balance of payments), price changes, exchange rate changes and other adjustments.

	3.3 INTERNATIONAL INVESTMENT POSITION: STANDARD COMPONENTS
				Changes in position reflecting
			Position at beginning of period	Transactions	Price changes	Exchange rate changes	Other adjust- ments	Position at end of period
	Australian Investment abroad - Net Assets
	Direct investment abroad
		Equity capital and reinvested earnings
		Other capital
	Portfolio investment
		Equity securities
		Debt securities
	Other investment
		Trade credits
		Loans
		Currency and deposits
		Other assets
	Reserve assets
		Monetary gold
		Special Drawing Rights
		Reserve position in the IMF
		Foreign exchange
	Foreign Investment in Australia - Net Liabilities
	Direct investment in Australia
		Equity capital and reinvested earnings
		Other capital
	Portfolio investment
		Equity securities
		Debt securities
	Other investment
		Trade credits
		Loans
		Currency and deposits
		Other liabilities