balancing item
Variable that adjusts to maintain the consistency
of a financial plan. Also called plug.
Related Terms: ...
Balancing Item
Definition of Balancing Item: This is a item used when preparing accounts to cover up imbalances between two figures which should balance.
balancing item - Related Articles
Understanding the Balance Sheet
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Balancing items
Definition: Represents the net total of errors and omissions in the other items in the balance of payments.
Balancing item - The estimated net value of omissions from all other items recorded on the balance of payments accounts.
The balancing item is simply an amount that accounts for any statistical errors and make sure the current and capital accounts sum to zero.
As bills must be paid, ultimately a country's accounts must balance (although because real life is never that neat a balancing item is usually inserted to cover up the inconsistencies).
Net lending is used as a balancing item in the capital account. It is calculated as follows:
Where:
CT = Capital Transfers
NFS = Non-Financial Assets ...
 See also: Expense, Balance of payments, Current account, Bills, Temporary investment
  
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