Question

How are both imports and exports valued in the Balance of Payments (BoP) according to the IMF manual?

a.

Imports are valued at market prices, and exports are valued at face value

b.

Both imports and exports are valued at free on board (FOB) basis

c.

Imports are valued at book value, and exports are valued at market prices

d.

Both imports and exports are valued at historical cost

Posted under IC 89 Management Accounting

Answer: (b).Both imports and exports are valued at free on board (FOB) basis Explanation:The IMF manual recommends that both imports and exports should be valued at free on board (FOB) basis. This means the price paid for the insurance and shipment of goods should not be included as part of the value of goods.

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Q. How are both imports and exports valued in the Balance of Payments (BoP) according to the IMF manual?
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