a. Change in residence of individuals
4.165 Households or their individual members can change their territory of residence. Because all members of a household are residents of the same territory, the movement of an individual may require that the person leave one household and become a member of another household. The change in the residence by an owner of an asset or by someone who has a liability requires a reclassification, because no exchange is made between two parties and, accordingly, no transaction occurs.
b. Assets moved between entities
4.166 For what are called “corporate migrations,” two situations can occur: one in which assets are moved between entities and another in which the corporation itself changes residence. When a company is said to relocate to another jurisdiction, it usually involves transactions to move assets from a corporation in one economy to a related corporation in a different economy. That is, the ownership of assets is moved, rather than the entity changing residence.
c. Change in residence of entities other than persons
4.167 In contrast, in some rare cases, an entity changes its residence (i.e., without moving assets to ownership by another entity). These cases could arise from exchanges of territory between governments. Additionally, corporation or trust law in some cases allows entity emigration or immigration (e.g., it could be permitted within an economic union, but is not generally the case for most jurisdictions). The effects on the IIP would be treated as other changes in volume in the same way as for the change in residence of an individual, recorded in the other changes in financial assets and liabilities account.
Paragraph 4.165 - 4.167, Page 78 BPM6