Statistical Treatment of Accrual of Intereston Debt Securities / Chris Wright, John Joisce.

Format:

Book

Government document

Author/Creator:

Wright, Chris.

Contributor:

Joisce, John.

Series:

IMF Working Papers; Working Paper ; No. 2001/132

IMF Working Papers

Language:

English

Physical Description:

1 online resource (42 pages)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2001.

Language Note:

English

Summary:

When new international statistical standards were published in 1993, one of the major changes to the recommended presentation of the system of national accounts and the balance of payments was the adoption of accruals reporting for income and expenditure. However, as countries have begun to implement these standards, questions have arisen about their exact interpretation in respect of interest flows associated with tradable debt, where the cash flow is fixed at the time of issue but where the price of the instrument fluctuates with market conditions. A clear consensus has yet to emerge. The paper explores the issues involved in using the alternative approaches, the so-called "debtor" and "creditor" approaches. The debtor approach uses the rate implicit at the time of issue, and the creditor approach, the current market rate. The paper concludes that the creditor approach is the only one consistent with accrual principles and market valuation for the debt outstanding. It reviews implications for national and sectoral saving from this approach.

Notes:

Bibliographic Level Mode of Issuance: Monograph

Description based on print version record.

ISBN:

9786613803337

9781462320639

1462320635

9781451985399

1451985398

9781282110441

1282110446

9781451900637

1451900635