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Home > Statistics > Balance of Payments > Balance of Payments (Data Based on the BPM6 [Data from January 2014 onward]) > Recording Principles of Direct Investment
The recording principle of direct investment varies depending on the data series.
|Data series||Recording principle||General description|
||Asset and Liability Principle||Investments of Japanese companies in foreign companies are classified as assets and investments from foreign companies in Japanese companies are classified as liabilities.
For direct investment income, receipts of dividends etc. by Japanese companies from foreign companies are recorded as credit and payments of dividends etc. from Japanese companies to foreign companies are recorded as debit.
||Directional principle||Investments of a Japanese company in an overseas affiliated company are classified as outward investment (assets) and investments from a foreign company in a Japanese affiliated company are classified as inward investment (liabilities).
For example, investments from an overseas affiliated company in its parent company in Japan are not recorded under inward investment but recorded as reverse investments, namely withdrawals from the parent company, under outward investment.