" 2.17 The financial account shows net acquisition and disposal of financial assets and liabilities. This account is described in Chapter 8. Financial account transactions appear in the balance of payments and, because of their effect on the stock of assets and liabilities, also in the integrated IIP statement.
2.18 The sum of the balances on the current and capital accounts represents the net lending (surplus) or net borrowing (deficit) by the economy with the rest of the world. This is conceptually equal to the net balance of the financial account. In other words, the financial account measures how the net lending to or borrowing from nonresidents is financed. The financial account
plus the other changes account explain the change in
the IIP between beginning- and end-periods. "
Paragraph 2.17 & 2.18, Page 9-10, BPM6
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