Off-balance sheet finance: Difference between revisions
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* [[Balance sheet]] | * [[Balance sheet]] | ||
* [[Double entry]] | * [[Double entry]] | ||
* [[Finance lease]] | * [[Finance lease]] | ||
* [[Gearing]] | * [[Gearing]] | ||
Revision as of 11:42, 6 November 2015
Any form of finance that does not result in a corresponding liability appearing on the entity's published balance sheet.
On double-entry bookkeeping principles the asset being financed cannot appear either.
The effect of such financing and accounting methods is to show the company's borrowings and financial risk at a lower level than they really are.
