Definition: Principal party (to a transaction)

SNA 1993

When a unit carries out a transaction on behalf of another unit, the transaction is recorded exclusively in the accounts of the principal party, although some service output may be recognised with the intermediary; for example, purchases a commercial agent makes under the orders of, and at the expense of, another party are directly attributed to the latter while the accounts of the agent only show the fee charged to the principal for intermediation services rendered.
Source:
United Nations, "System of National Accounts (SNA) 1993", § 3.31 and 3.32, United Nations, New York, 1993
Created:
Updated:

Search box

Search