Since GFS follows the principle of cash accounting, transactions are valued at the amount of cash involved, transactions are valued at the actual price agreed upon / market price.
Issues of valuation arises (i) when transactions are made in currency other than the national currency, and (ii) in the valuation of debt.
(i) GFS values transactions and stocks in foreign currency at the market exchange rate of the transaction currency against the national currency prevailing at the time the transaction takes place, or the stock is outstanding.
(ii) GFS values debt at the amount the government is obligated to pay when the debt matures, called variously its nominal, par, or face value. Thus when valuing debt GFS excludes the effects of discounts and premia, accrued interest and capital gains/losses.
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