Net financial assets

The net acquisition of land (and other non-produced tangible assets) is recorded in the capital account (acquisitions of non-financial assets account).

Net acquisition of financial assets

Transactions in financial instruments (F) (Net acquisition of financial assets/net incurrence of liabilities)

Other volume changes in financial assets and net liabilities n. e. c.

which describe the net acquisition of financial assets or the net incurrence of liabilities for each type of financial instrument.

The financial account records, by type of financial instrument, the changes in the financial assets and liabilities that compose net lending or borrowing.

The column contains the diagonal item and the net acquisition of external financial assets (88) in cell (18, 8).

Fourthly, the financial account gives the net acquisition of external financial assets (cell 18, 8) and net lending of the rest of the world (cell 18, 17) in the row, and the net incurrence of external liabilities (cell 8, 18) in the column.

For an institutional unit, a swap or a forward rate agreement is recorded under the item financial derivatives on the assets side where it has a net asset value, positive net payments increasing the net value (and conversely).

Of course, the net incurrence of external liabilities plus net lending of the total economy equals the net acquisition of external financial assets, so that in this account too the balance between row and column totals is maintained.

This account records acquisitions less disposals of non-financial assets in order to return from the concept of change in net worth due to saving and capital transfers to net lending or borrowing.

Most balancing items can be calculated gross or net. In this matrix, all balancing items are shown net. Consumption of fixed capital (222) is put directly on the capital subaccount for the acquisition of non-financial assets (row 7 and column 2).

Similarly, with few exceptions, the financial account and other changes in assets accounts record increases in assets and in liabilities on a net basis, bringing out the final consequences of these types of flows at the end of the accounting period.

In the financial account, net equity of policyholders in non-life insurance reserves is shown as a change in assets of policyholder sectors and a change in liabilities of the insurance sector.

In the financial account, the item net equity of households in life insurance reserves is shown as a change (negative if necessary) in households' assets and life insurance enterprises' liabilities.

The Rest of the World capital account records acquisitions less disposals of non-produced non-financial assets by non-resident units and measures the changes in net worth due to saving and capital transfers.

The evolution of the return on net assets was consistent with the profitability figures and showed a clear deterioration of the financial situation of the Community industry, especially subsequently to the year 1998.

The capital account records acquisitions less disposals of non-financial assets by resident units and measures the change in net worth due to saving (final balancing item in the current accounts) and capital transfers.

The change in net equity of non-resident households on life insurance reserves is shown in the financial account of the rest of the world as a change in the rest of the world's assets and the insurance sector's liabilities.

Fifthly, the account for other changes in assets presents in the row such changes of assets (7), see cell (19, 22), and in the column such changes of liabilities (3), see cell (22, 19), and also the balancing item, changes in the net external financial position due to other changes (4), see cell (21, 19).

the opening stock of external assets (573), see cell (20, 22), the opening stock of external liabilities (297), see cell (22, 20), the opening net external financial position of the rest of the world vis-a-vis the total economy (276), see cell (23, 20), total changes in the net external financial position of the rest of the world (-34), see cell (23, 21), and the closing financial position of the rest of the world vis-a-vis the total economy (242), see cell (22, 23).

deleting the other changes in assets account, the opening balance sheet, the changes in balance sheets account, the closing balance sheet and the net worth account, both for the total economy and for the rest of the world, and deleting the external financial account;

another one for changes in assets due to the current external balance and capital transfers (50), see cell (17, 22), acquisitions less disposals of non-produced non-financial assets by non-resident units, see cell (7, 17), changes in liabilities due to the current external balance and capital transfers (88), see cell (22, 17), and the balancing item net lending of the rest of the world (-38), transferred to the next account.

net assets (assets after allowing for depreciation less liabilities financial intermediarieds only (optinal).

The net acquisition of land (and other non-produced tangible assets) is recorded in the capital account (acquisitions of non-financial assets account).

the financial impact of the departure on the enterprise's net profit or loss, assets, liabilities, equity and cash flows for each period presented.

An adjustment may be required to reduce the carrying amount of an asset in the financial statements of the reporting enterprise to its recoverable amount or net realisable value even when no such adjustment is necessary in the financial statements of the foreign operation.

In consolidated financial statements, a current tax asset of one enterprise in a group is offset against a current tax liability of another enterprise in the group if, and only if, the enterprises concerned have a legally enforceable right to make or receive a single net payment and the enterprises intend to make or receive such a net payment or to recover the asset and settle the liability simultaneously.

Changes in an enterprise's equity between two balance sheet dates reflect the increase or decrease in its net assets or wealth during the period, under the particular measurement principles adopted and disclosed in the financial statements.

In most countries financial statements are prepared on the historical cost basis of accounting without regard either to changes in the general level of prices or to changes in specific prices of assets held, except to the extent that property, plant and equipment may have been revalued or inventories or other current assets reduced to net realisable value.

the net profit or loss on transactions in securities which are not held as financial fixed assets together with value adjustments and value re-adjustments on such securities, taking into account, where Article 36 (2) has been applied, the difference resulting from application of that article;

A cash flow statement, when used in conjunction with the rest of the financial statements, provides information that enables users to evaluate the changes in net assets of an enterprise, its financial structure (including its liquidity and solvency) and its ability to affect the amounts and timing of cash flows in order to adapt to changing circumstances and opportunities.

not permit any such company whose net assets fall below the amount specified in paragraph 1 (a) to make a distribution to shareholders when on the closing date of the last financial year the company's total assets as set out in the annual accounts are, or following such distribution would become, less than one-and-a-half times the amount of the company's total liabilities to creditors as set out in the annual accounts;

In those Member States which exercise the option provided for in Article 37, this item shall also include the net profit or loss on transactions in securities included in Assets items 5 and 6 which are neither held as financial fixed Assets as defined in Article 35 (2) nor included in a trading portfolio, together with value adjustments and value re-adjustments on such securities taking into account, where Article 36 (2) has been applied, the difference resulting from application of that article.

Except for cases of reductions of subscribed capital, no distribution to shareholders may be made when on the closing date of the last financial year the net assets as set out in the company's annual accounts are, or following such a distribution would become, lower than the amount of the subscribed capital plus those reserves which may not be distributed under the law or the statutes.

Each of the ECB's net profits or losses (if any), the NCBs' monetary income, the ECB's seigniorage income, the remuneration on the NCBs' claims equivalent to the foreign reserve assets transferred to the ECB and the remuneration on the intra-Eurosystem balances on euro banknotes in circulation, in relation to the financial year 2003 shall be allocated and distributed in accordance with the capital key weightings applicable on 31 December 2003.