Gratuitous transfers provision of economic values by one party to another without appearance of some requirements or receipt of values without appearance of obligations. Transfers may be current and capital. Movement of material and financial resources, accompanying migration of people are referred to capital transfers. Current account reflects the movement of all goods and services of factor profit and current transfers between residents and non-residents. Capital account includes operations with capital transfers and non-financial assets.
Financial account consists of all operations changing international investment position.
Sub-accounts of sectors of balance of payments are interconnected. Positive balance in the sum of current account and capital transfers means net increase of assets and frequent decrease of obligations. And the deficit leads to frequent decrease of assets and net increase of obligations to non-residents. The structure of balance of financial account and changes of net external assets and liabilities indicates, what financial requirements and obligations increased or decreased. The above operations are reflected in different items by the following classification.