Net errors and omission (NEO)
By the integrity rule of balance of payments, the total of the current- and the capital account corresponds to the net of
the financial account (net lending or net borrowing). In practice, NEO, i.e. net errors and omissions, is the difference between
the indicators calculated in two different ways (net lending or net borrowing), which arises due to different data sources
(bank, corporate, government reports) the compilation based on. Because of the valuation-, timing- and other differences between
the different data sources, or of potential errors in recording, the match re-sulting from the principle of double-entry bookkeeping
may only be random, this is why a balancing item should be included, i.e. NEO.