capital account


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Related to capital account: Financial account

Capital account

Net result of public and private international investment and lending activities.

Capital Account

A calculation of the amount of money coming into and going out of a country. The capital account is calculated by netting the public and private investments within the country with those the government and domestic companies are making outside the country. For example, one must net the foreign direct investment in the country with the FDI the government and businesses are making in other countries to come up with part of the calculation of the capital account. Other inputs into the capital account include (but are not limited to) bank accounts and changes in the amount of domestic and foreign holders of stocks, bonds, and currencies.

capital account

  1. 1the section of the NATIONAL INCOME ACCOUNTS that records INVESTMENT expenditure by government on infrastructure such as roads, hospitals and schools; and investment expenditure by the private sector on plant and machinery.
  2. the section of the BALANCE OF PAYMENTS
accounts that records movements of funds associated with the purchase or sale of long-term assets and borrowing or lending by the private sector.
References in periodicals archive ?
In other words, an adjustment to the capital accounts is warranted to "true up" the partners' capital accounts just prior to the change in economics by allocating to the partners any unrealized income, gain, loss, or deduction inherent in the partnership property that previously has not been reflected in the partners' capital accounts, based on their existing economic agreement.
China is moving with caution with regard to opening capital accounts, for fear that it might jeopardise internal financial security.
Each time OP interests are converted to REIT shares an additional income allocation layer is created by the revaluation of the REIT assets and capital accounts based on the share price at the time of conversion.
Nevertheless, a big advantage for China is that Hong Kong provides an effective platform for launching these measures in an experimental manner without full capital account opening.
But it maintains tight restrictions on the capital account, particular on debt and portfolio investment, worried that freeing up the yuan too quickly could leave the economy vulnerable to rapid movements in capital in and out of the country.
Countries with convertible currencies under their capital account let their currencies trade with few restrictions for investment purposes.
Subbarao s comments were in line with those of other Indian policymakers who have repeatedly said the capital account must be opened up only gradually.
Any successful solution will hinge on whether or not current holders of depleted capital accounts can legally retain some form of rights to any future earnings on corporates' 'legacy assets'", Matz said.
As a result, even payments that are clearly capital in nature and generally treated as on capital account under current law would default to income account treatment.
The parties did not properly maintain capital accounts.
Putting aside errors and omissions in the data, the capital account surplus is necessarily equal to the current account deficit.