" 3.109 Transactions, other flows, and positions of external financial assets and liabilities are presented in the international accounts by grouping them into several analytically meaningful categories. The classification of transactions, other flows, and positions of financial assets and liabilities is aimed at developing aggregates that group similar items and separate those items that have different characteristics. Aggregates and classifications are closely linked in that classifications are designed to produce the aggregates thought to be most useful. "
" 3.110 Aggregates are summations of elementary items in a class of transactions, other flows, or positions. For example, compensation of employees is the sum of all flows that are classified as compensation of employees. For financial assets and liabilities, the aggregation of position or flow data is usually done across all institutional units within a subsector or sector. Aggregation is hierarchical in the sense that upper level aggregates are derived directly by summing the lower-level aggregates."
" 3.114 In the case of flows in financial assets and liabilities, the term “net” may have dual meanings (summing all debits and credits for a financial asset type or a liability type and netting of an asset against a liability). To avoid confusion, this Manual adopts the following conventions:
(a) In the case of flows, “net recording” always refers to aggregations for which all debit entries of a particular asset or a particular liability are netted against all credit entries in the same asset type or in the same liability type (e.g., acquisitions of foreign currency are netted against the sales of the foreign currency; bond issues are netted against redemption of bonds).
(b) When net is used together with a category of financial instrument (net financial instrument), such as “net financial derivatives,” netting of a financial asset against the same type of liability is understood.
(c) Title of some derived measures also uses the term “net.” They are “net lending/borrowing” and “net international investment position.”
Paragraph 3.109, 3.110, 3.114 Page 46-47, BPM6
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