Net current transfers and Capital account (1 Viewer)

[Arithela]

whats the difference between the 2 accounts?

 

[midifile]

whats the difference between the 2 accounts?

Net current transfers are part of the current acount and record one way flows of product and financial reources such as pensions, foreign aid and migrant funds. It is usually a small deficit or small surplus (but is more or less balanced and stagnent).

The capital account records foreign aid for capital works intelectual propery rights (such as patents, franchises and tradmarks) and net capital brought into Australia by migrants.

It gets a bit confusing with the distinction between where foreign aid and migrant funds should be put, as both accounts cover them, but any capital transfers (such as foreign aid for capital works) are put in the capital account.