Consolidation and netting
1.58
Consolidation refers to the elimination, from both uses and resources, of
transactions which occur between units when the latter are grouped, and to the
elimination of reciprocal financial assets and liabilities.
For sub-sectors or sectors, flows and stocks between constituent units are not
consolidated between constituent units as a matter of principle.
However, consolidated accounts may be built up for complementary presentations
and analyses. For certain kinds of analysis, information on the transactions
of these (sub) sectors with other sectors and the corresponding 'external' financial position is more significant than overall gross figures.
Moreover, the accounts and tables showing the creditor/debtor relationship
provide a detailed picture of financing of the economy and are considered very
useful for understanding the channels through which the financing surpluses move
from final lenders to final borrowers.