ANNEX A EUROPEAN SYSTEM OF ACCOUNTS
ESA 1995

CHAPTER 1 GENERAL FEATURES

THE ESA AS A SYSTEM

THE SYSTEM OF ACCOUNTS AND THE AGGREGATES

The sequence of accounts
1.62. It is not possible to envisage a complete set of accounts, including balance sheets, being compiled for a local KAU, because generally such an entity is not capable of owning goods or assets in its own right or capable of receiving or disbursing income. The sequence of accounts for local kind-of-activity units and industries is shortened to the first current accounts: production account and generation of income account, the balancing item of which is the operating surplus.
See chapter 7: ‘Balance sheets’, and chapter 8: ‘Sequence of accounts and balancing items’.