2. BPM5 extensions (a) Analysis of balance of payments transactions by origin and destination 2.62. Balance of payments statistics by origin and
destination are needed for analytical and policy purposes
and for use in bilateral and multilateral negotiations.
Country or regional analysis of trade in services,
whether associated with balance of payments
transactions, foreign direct investment or FATS, is a
necessary complement to both product and economic
activity classification systems. To the extent feasible, an
identical geographical basis should be used for all
related sets of services statistics. The geographical
allocation of services transactions in the balance of
payments is to the country where the provider or
acquirer of the service is resident.
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For additional detail on direct investment concepts and
definitions, see box 7.
(b) The Extended Balance of Payments Services Classification 2.63. The Extended Balance of Payments Services
Classification has been devised for the Manual based on
the experience gained with the implementation of the
Joint Classification. It is a disaggregated sub-system of
the BPM5 services classification. Annex II shows the
relationship between EBOPS, the BPM5 classification
of services and the Joint Classification. Correspondence
tables are provided in annex III linking the EBOPS with
CPC Version 1.0, thus providing greater detail and a
necessary although partial statistical link between
domestic production and trade in services. The need for
a convergence of the product classifications of industry
and trade, for comparative purposes, requires further
development work to more closely align the structural
components of EBOPS and CPC. The correspondence
shown in annex III is an important first step in this
direction, which clarifies the definition of EBOPS
through the use of the detailed categories of CPC. As
described in chapter III, EBOPS contains main
categories that are identical to the 11 major BPM5
standard services components, as well as further details
that are consistent with BPM5. The harmonization is
bolstered by the standardization of the coding systems
for identification and reporting purposes.