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Financial accounting

Financial accounting refers to the field of accounting that provides economic and financial information for investors, creditors, and other external users. The information needs of external users vary considerably.

It is a section of the balance of payments accounts. Under the revised format of the International Monetary Fund, the financial account measures long-term financial flows including direct foreign investment, portfolio investments, and other long-term movements. Under the traditional definition, still used by many countries, items in the financial account were included in the capital account.

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