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DRAFT: March 2003
Chapter Four
Accounting Framework and Sectoral Financial Statements
Introduction
4.1 Fundamental to understanding the financial condition of deposit-takers, other
corporations, and households is information from the traditional financial statements on
income and expense, and the stock of assets and liabilitiesthe balance sheet. Data series
obtained from such statements can be used to calculate many of the FSI ratios for
corporations and households.
4.2 This chapter begins by outlining the traditional accounting framework for which
financial statements are drawn, before presenting detailed sectoral financial statements and
defining the line-item series. The guidance is provided in order to assist in the compilation of
the component series required to calculate the FSI ratios. It draws upon the relevant
conceptual advice for other economic statistics, international accounting standards and
supervisory guidance, and takes account of macroprudential requirements.
4.3 In addition to data reported by individual institutions consistent with the guidance in
this chapter, some data are required to make adjustments at the sector-level primarily to
eliminate transactions and positions among institutions within the same sector. While sector-
level data are discussed in more detail in Chapter 5, where appropriate the series required for
sector-level adjustments are noted in footnotes in this chapter. 38
4.4 Also, it is recognized that the development of FSI data is a new initiative in many
countries and so to compile these data in the short-term may well require reliance upon
38 The Guide prefers the reporting of financial statement data by individual institutions on a basis that is
internally consistent for each institution, with additional information provided by individual institutions to
permit appropriate adjustments at the sector-level. This approach will not only provide more coherent
informa