How does BizTalk Transformation tool support references in schemas ?

Actually the question is about is there functioid for BTS which facilitates the transformation like this one:

It could be done easily using XSLT inside transformation, but I prefer to have some possibility inside Transformation engine which allows to substitute (logically) all references by the XML fragment they point to.

For example,

InputXml.

<fpML>

    <account>

            <partyReference>BAO</partyReference>

    <account>

    <party><PartyId>BAO</PartyId><Name>Bank Of America</Name>….</party>

    <party><PartyId>CG</PartyId><Name>Citi Group</Name>….</party>

    <party><PartyId>HB</PartyId><Name>Houshold Bank</Name>….</party>

</fpML>

The output should be:

<root>

   <Trade><partyName>Bank Of America</partyName></Trade>

<root>

 For instance, there could be some functioid where you can join to element and map the subset of joining result to output.