Financial account of the balance of payments

A financial asset means one of the following assets: - Cash - A contractual right to receive cash or another financial asset from another party - A contractual right to exchange financial instruments with another party on potentially favourable terms; or - An ownership instrument of another party.

Is a contractual obligation to - provide cash or another financial asset to another party, or - exchange financial instruments with another party on potentially unfavourable terms

The balance of payments is an aggregate of Denmark's transactions with the rest of the world. It is subdivided into current account, capital account and financial account.

The current account consists of transactions in goods and services, remuneration of labour and return on capital (investment income such as interest and dividends) as well as current transfers, like aid to developing countries.

The capital account includes certain one-off transactions. A division is the acquisition and disposal of non-produced and non-financial assets (e.g. trademarks). Another division is capital transfers, which can include grants for investment in development aid.

The financial account shows transactions that change Denmark's foreign financial assets and liabilities. It shows how surpluses (or deficits) in the current account are placed (or financed), such as shares, investment fund certificate, bonds, loans and deposits.

Securities trading between Denmark and other countries, such as the buying and selling of shares, bonds and investment certificates across Danish borders. The investor does not have significant influence over the decisions of the company in which the investment is made.