I. Methodological framework, concepts, definitions and classifications

• Methodological framework: The methodological and conceptual framework for balance of payments statistics is the sixth edition of the International Monetary Fund's “Balance of Payments and International Investment Position Manual” (BPM6).
  
• Definition: The balance of payments of the Republic of Kazakhstan is a statistical report that summarizes economic transactions between residents and non-residents for a certain period of time.
  
  An institutional unit is a resident of the Republic of Kazakhstan if the economic territory of the Republic of Kazakhstan is the center of its predominant economic interest. An economic operation is the interaction of two institutional units, which is carried out by mutual agreement and is accompanied by the exchange of economic values or a transfer.
• Classification system: Transactions in the balance of payments are grouped into three accounts: current account, capital account, and financial account.

The current account includes:
- goods (export and import);
- services (export and import);
- primary income : wages, investment income, other primary income
(receivable and payable);
- secondary income (receivable and payable).

The capital account includes:
- non-produced non-financial assets (acquisition and disposal);
- capital transfers (receivable and payable).

The financial account records transactions with financial assets and liabilities between residents and non-residents. The standard components of a financial account are classified as follows:

- by functional categories - direct investments, portfolio investments, financial derivatives and stock options for employees, other investments, reserve assets;

- for financial instruments - equity participation instruments and shares of investment funds, debt instruments (cash and deposits, debt securities, loans and borrowings, insurance, pension programs and standard guarantee programs, special drawing rights, trade loans and advances , other requirements/ obligations);

- by institutional sector - the central bank, banks, government, other sectors, which are subdivided into two subsectors - other financial institutions and non-financial institutions, households and non-profit institutions serving households (NPISH);

- by maturity (for debt instruments) - short-term (with an original maturity of one year or less) and long-term (with an original maturity of more than one year).

The value of the current account balance reflects the difference between savings and investments in the economy of the Republic of Kazakhstan. The value of the current and capital account balances represents net lending or net borrowing of the economy of the Republic of Kazakhstan in relation to the rest of the world and is conceptually equal to the value of the financial account balance. The difference arising in practice between them is a statistical discrepancy and is reflected in the article “Pure errors and omissions”.

II. Data coverage

• Statistical coverage: Balance of payments statistics cover all economic transactions of all resident institutional units with nonresidents. Branches of foreign companies established on the territory of the Republic of Kazakhstan are classified as residents. International organizations located on the territory of the Republic of Kazakhstan, regardless of the duration of their activities, are classified as non-residents.
  
• Geographical coverage: The economic territory of the Republic of Kazakhstan coincides with its geographical territory within the state border, with the exception of embassies, consulates and other official bodies of foreign states, which are considered extraterritorial in relation to the economy of Kazakhstan. Embassies, consulates, military bases and other official bodies of the Government of the Republic of Kazakhstan abroad belong to the economic territory of the Republic of Kazakhstan.
  
  III. Accounting principles
  
• Valuation: Balance of payments transactions are valued at market prices. Exports and imports of goods are quoted at FOB prices; Monetary gold is accounted for using the London Bullion Market Association (LBMA) morning fix of the previous reporting date.
  
  Balance of payments data is generated in US dollars. Transactions carried out in other currencies are translated into US dollars at the exchange rate established at the date of these transactions. In the absence of information on the dates of transactions the average quarterly exchange rate is applied.
  
• Basis of accounting: In the balance of payments statistics, transactions are recorded on an accrual basis. This means that flows are reflected at the time of creation, transformation, exchange, transfer or liquidation of economic value.
  
  The current account and the capital account record transactions on a gross basis. Exports of goods and services, primary and secondary income receivable, capital transfers receivable and disposal of non-produced non-financial assets are recorded as credit, imports of goods and services, primary and secondary income payable, capital transfers payable and purchases of non-produced non-financial assets are recorded as debit.
  
  In the financial account, transactions in assets and liabilities are accounted for on a net basis with all debit entries balanced against credit entries for the same type of asset or for the same type of liability.

IV. Main sources of information

• Goods : Data of the Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan on mutual trade with the member states of the Eurasian Economic Union, data of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan on customs statistics with third countries, own calculations of the National Bank of Kazakhstan on unaccounted foreign trade transactions of individuals ("shuttle" trade) and the conversion of imports in CIF prices to imports in FOB prices , as well as other transactions using the balance of payments methodology (goods in ports, goods for processing, other amendments) .
• Services: The sources of information are statistical and administrative reports of banks, other financial and non-financial organizations, including branches of foreign companies and government agencies, administrative reports of individuals, and own estimates of the National Bank of Kazakhstan.
• Primary income: The sources of information for the article "Compensation of Employees" are statistical and administrative reports of banks, other financial and non-financial institutions, including branches of foreign companies and government bodies, and the National Bank of Kazakhstan’s own estimates.
  
  The sources of information for the article "Investment income" are statistical and administrative reports of banks, other financial and non-financial organizations, including branches of foreign companies and government agencies, administrative reports of individuals. Data on the income of the National Bank of Kazakhstan and the National Fund are formed on the basis of internal information of the National Bank of Kazakhstan, reports of external managers and the global custodian on the assets of the National Fund.
  
• Secondary income: The Sources of information are statistical and administrative reports of banks, other financial and non-financial organizations, including branches of foreign companies and government agencies, own estimates of the National Bank of Kazakhstan (personal transfers).
  
• Capital account: Sources of information are statistical and administrative reports of banks, other financial and non-financial organizations, including branches of foreign companies and government agencies, administrative reports of individuals, information from the Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan.
  
• Direct investments: Sources of information are statistical and administrative reports of banks, other financial and non-financial organizations, including branches of foreign companies and government agencies, administrative reports of individuals, financial statements of individual organizations.
  
• Portfolio Investments:
  These statistical reports provided by professional securities market participants (brokers, dealers, management organizations of investment portfolios, nominal holders and the registrars of securities), banks and a single accumulative pension fund. The data on the operations of the National Fund are compiled from the report of the global custodian.
  
• Derivative financial instruments and stock options for employees:
  The data source are statistical and administrative reports of banks, other financial and non-financial organizations, accounting data of the National Bank of Kazakhstan, reports of external managers and reports of the global custodian on the assets of the National Fund.
• Other investments: The sources of information are statistical and administrative reports of banks, other financial and non-financial organizations, including branches of foreign companies and government agencies, administrative reports of individuals, financial statements of the National Bank of Kazakhstan and reports of the global custodian on the assets of the National Fund, estimates of the National Bank Kazakhstan (on transactions of individuals )
• Reserve assets: Data of the financial statements of the National Bank of Kazakhstan and reports of external managers.
  
  V. Practical features of data development
  
• Commodities: Major adjustments to the official data are made to ensure better coverage. This adjustment covers unorganized (not accounted for by official statistics) transactions between residents and non-residents without crossing the border of Kazakhstan , goods for processing, goods in ports and foreign trade transactions of individuals ("shuttle" trade). The shuttle trade estimates are based on the number of shuttle traders and the average value of the goods they import and export. The number of shuttles is estimated based on data from the border services of Kazakhstan. The average cost of goods transported by shuttle traders is determined on the basis of special surveys and other sources of information. Another significant adjustment is for the conversion of import values from CIF prices to FOB prices using the valuation coefficients of the National Bank of Kazakhstan.
  
• Services: Credit and debit transactions for freight transport (freight) are estimated based on merchandise trade statistics, adjusted for CIF-FOB import values, and costs estimated based on specific surveys and regulations. Credit and debit travel entries are valued based on the number of individuals crossing the Kazakhstan border, average length of stay, and average cost per trip. The initial information on the number of crossing the border Individuals are the data of the Border Service of Kazakhstan National Security Committee. Average expenditure by purpose of travel is estimated based on specific surveys and standards. The information of banks and the National Bank on payments (transfers) of clients are also used.
• Primary income: Compensation data for non-resident workers are compiled from business surveys, compensation data for resident employees of international organizations and foreign diplomatic missions is estimated based on the average wages.
  
  Direct investment income is compiled by comparison with the financial statements of the respondents. Banks' information on payments (transfers) of clients is also used.

Portfolio investment income is calculated by the National Bank of Kazakhstan based on information from prospectuses, exchange information, statistical data of professional participants in the securities market. Government revenues include the investment income of the National Fund.

• Secondary income: Personal transfers are compiled on the basis of statistics on payments and transfers, generated by codes of purpose of payments. The data includes all received and / or sent transfers of individuals, taking into account the assessment of the National Bank of Kazakhstan, which determines the share of the volume of gratuitous transfers of individuals in the total volume of personal transfers classified by senders as gratuitous.
• Direct investments: For a more complete accounting of direct investments in other sectors of the economy related to equity participation and reinvested income, the National Bank analyzes the financial statements of companies, analytical portals and mass transactions on large transactions and the market value of direct investments. Banks' information on payments (transfers) of clients is also used. According to the results obtained, the reporting data can be adjusted
• Other investments: Valuation of transactions of individuals with foreign currency in cash. Banks' information on payments (transfers) of clients is also used.

VI. Other aspects

• Seasonal adjustment: not applicable .
• Additional information: on a quarterly basis, additional data such as:

- International trade in goods of the Republic of Kazakhstan (foreign trade turnover, structure of exports and imports, exports of certain goods, geographic structure);
- International trade of the Republic of Kazakhstan in services (extended classification, geographical structure, by regions of Kazakhstan);
- Personal transfers (gratuitous money transfers of individuals);
- Direct investments according to the data of the balance of payments of the Republic of Kazakhstan (geographic and sectorial profile);
- Net acceptance of obligations according to the data of the balance of payments of the Republic of Kazakhstan (geographic and sectorial profile)

• Other:
  The quarterly publication of reporting data is accompanied by an analytical commentary in the publication Balance of Payments and External Debt of the Republic of Kazakhstan.