TECHNICAL NOTES to 2003 BOP Revision Annex A-2
                           
  ACCOUNTS   ISSUE NATURE OF REVISION METHODOLOGY TO  
                Coverage Classification Others   CORRECT PROBLEM  
                           
                           
  I Current Account              
             
  A Trade in Goods          
             
  1. Exports       Expanded coverage To include exports of tuna on high seas  
             
  2. Imports            
             
        Expanded Coverage to include those not captured in NSO's reports To include: a) OFW remittances in kind b) purchases of local airlines in foreign c) tuna imports in high seas  
             
        Valuation adjustment To correct the understatement of consigned imported raw materials for electronics exports based on the proposed methodology of the IAC on Trade Statistics  
                           
             
  B. Trade in Services          
             
  1. Passenger          
  Exports       Expanded coverage To include ticket sales of local airlines deposited in bank accounts abroad  
             
  Imports       Change in database To replace FX form 1 with reports of the Civil Aeronautics Board (CAB)on receipts of foreign airlines.  
             
             
  2. Travel            
  Exports       Expanded coverage To include expenditures in the Phils of non-resident OFWs during home visits ( in addition to expenditures of foreign tourists in the Philippines)  
             
  Imports       Expanded coverage To include expenditures abroad of resident OFWs for their maintenance abroad (in addition to expenditures abroad of resident tourists)  
             
  3. Other business services          
  Operational leasing          
  Imports     Expanded coverage To include aircraft rental by local airlines- data base on Cross Border Transaction survey  
             
  Misc. bus., prof., or tech.          
  Exports     Expanded coverage To include foreign airlines rental and office maintenance (CAB)  
      Reclassification of the account from government services and change in database To cover estimates of foreign embassies' expenditures in the Philippines based on benchmark survey of embassies, replacing FX Form 1 report  
  Imports     Expanded coverage To include consultancy services  
            To include OECD data on technical assistance (contra-entry in Current Transfers, General Govt.)  
             
  4. Government services          
  Exports       Reclassification of the account to miscellaneous services (See notes on miscellaneous services)  
             
  Imports       Change in coverage To replace FX Form1 report with Department of Foreign Affairs' budget for diplomatic and consular offices abroad  
                           
             
  C. Income            
             
  1. Compensation of employees Change in coverage to include only resident OFWs to cover earnings of seabased workers and entertainers whether remitted or not  
             
  2. Investment Income          
  Direct Investment Income          
  Income on equity          
  Disbursements     Expanded coverage To include remittances of BSP-registered FDI which were not covered in FX Form 1  
             
                           
             
  D. Current Transfers          
             
  1. General Government          
  Receipts     Expanded coverage To include USAID grants, OECD and other foreign grants  
             
  2. Workers' Remittances Change in coverage to cover non-resident OFWs To include remittances in cash and in kind  
             
                           
 
  II Capital Account              
             
                           
  III Financial Account              
             
  A. Direct Investment          
  Assets:            
  Equity capital          
  Placements     Expanded coverage To include estimates of investments abroad by local companies based on media reports  
        Reclassification To reclassify banks' investment abroad from other capital to equity capital  
  Other Capital     Reclassification (See notes on equity capital)  
  Liabilities:            
  Equity capital          
  Placements     Expanded coverage To include data from registration records not reported in FX Form 1  
            To include FDI in local banks not covered in Monetary Statistics  
             
  Reinvested earnings     Expanded coverage To include reinvested earnings in local banks  
  Other capital          
  Claims on direct investors     Expanded coverage To include trade credits with affiliated companies  
                           
             
  B. Portfolio Investment          
  Assets:          
  Equity Securitites     Reclassification to reconcile with Coordinated Portfolio Investment Survey (CPIS) To adopt CPIS levels by reclassifying a portion from Bonds and Notes to Equity Securities  
  Debt Securities            
  Bonds and Notes     Reclassification to reconcile with CPIS To adopt CPIS levels by reclassifying portions of previous reported bonds and notes to Equity securities, money market instruments and currency and deposits  
  Money Market Instruments     Reclassification to reconcile with CPIS To adopt CPIS levels by reclassifying a portion of previously reported bonds and notes to money market instruments  
  Liabilities:            
  Equity securities          
  Banks     Expanded coverage To include Portfolio Investment in local banks not previously recorded  
  Debt Securities          
  Other sectors     Expanded coverage To include net resale(purchase) of Phil Debt Paper holdings of trust dept of banks, insurance companies, pension funds and other non-banks. Previous estimates covered BSP and banks only.  
                           
  C. Financial Derivatives     New account To cover settlement of banks' financial derivatives  
                           
             
  D. Other Investment          
  Assets:            
  Trade credits          
  Other sectors          
             
  Short-term Change in coverage, new methodology, and new database To cover trade receivables from non-affiliates only; previous estimates included receivables from affiliates which are now covered under direct investment  
    Data based on CBTS; previously a derived estimate based on NSO exports data and FX Form 1 exports receipts data  
             
  Currency & deposits            
  Banks Reconciliation with data of Bank for International Settlements (BIS) Reclassified over/understament of adjustments from Portfolio Inv. to Loans-banks  
  Other sectors     Additional database Bank for International Settlement(BIS) report for final data; FX Form1 & CBTS for preliminary data  
  Loans            
             
            Banks     Reconciliation with BIS data Residual estimates after reclassification of a portion to currency and deposits  
  Liabilities:            
  Trade credits          
             
  Other sectors Change in coverage, new methodology, and new database To cover trade payables to non-affiliates only; previously included payables to affiliates which are now covered under direct investment  
  Long-term External debt data on suppliers credit and CBTS data on trade payables: previously combined with short-term and derived from NSO imports data and FX Form 1 data on import payments  
  Short-term     New database (See notes above)  
             
                           
Date last modified:
8-Apr-2005