The balance of payments is the statistical statement that systematically summarises, for a specific time period, the economic transactions of an economy with the rest of the world. The following definitions are based on the IMF Fifth Balance of Payments Manual (BPM5). The Balance of Payments is broken down into three broad sub-balances: the current account, the capital account, and the financial account. Current Account: In the current account are covered all transactions (other than those in financial items) that involve economic values and occur between resident and non-resident units. It is divided into four basic components: goods, services, income and current transfers. Capital account: This item covers all transactions that involve (a) the receipt or payment of capital transfers (debt forgiveness, migrant's transfers, etc.) and (b) the acquisition/disposal of nonproduced, nonfinancial assets, which includes transactions associated with tangible assets (e.g., land and subsoil assets) and transactions associated with intangible assets (e.g., patents, copyrights, trademarks, franchises, etc.). Source: European Central Bank.