I am currently assisting on a research on cross border capital flows.
A common problem seems to be that both the acquisition of assets and valuation effects determine the cross border asset holdings as , for example, reported in the CPIS data. Hobza and Zeugner use the BoP statistics on portfolio investments to derive valuation effects on portfolio debt and equity (change in asset holdings minus acquisitions) (2014).
I am wondering if the valuation effect could also be estimated because I do not only want to distinguish between portfolio debt and equity but also between different types of instruments.
For instance, between different debt maturities.
Good evening friend,
The effects of valuation on assets across the globe depends on the laws (such as taxes) and practices of these countries and to a large extent the currency dynamics. Here are a few links that may be of help depending on what you want to achieve.
http://www.cas.org.cn/docs/2017-01/20170120142445588690.pdf
https://www.icjce.es/images/pdfs/TECNICA/C02%20-%20IASB/C210%20-%20IVSC%20-%20Normas/03-valuation_concepts.pdf
Valuation effects by type of asset are often estimated using securities price indexes and nominal exchange rates by country and by asset category. Here is documentation from the U.S. Bureau of Economic Analysis: https://www.bea.gov/international/concepts_methods.htm.
Look for the section on International Investment Position Accounts.
ASSET VALUATION is explained and guided by IFRS 13. See link
https://www.iasplus.com/en/standards/ifrs/ifrs13
Under IFRS 13, there are 3 valuation methods: (i) market approach, (ii) cost approach, and (iii) income approach. At IFRS 13:91, the company must disclose which valuation method is used so that there is no confusion for reader of the financial statements/reporting. See above link for detaILS.
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