Off balance sheet finance: Difference between revisions
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imported>Doug Williamson (Link with IFRS 16) |
imported>Doug Williamson (Remove surplus wording.) |
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Any form of finance that does not result in a finance liability appearing on a | Any form of finance that does not result in a finance liability appearing on a published balance sheet. | ||
On double entry bookkeeping principles, the asset being financed cannot appear either. | On double entry bookkeeping principles, the asset being financed cannot appear either. | ||
Revision as of 06:48, 15 October 2017
Any form of finance that does not result in a finance liability appearing on a 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 entity's borrowings and financial risk at a lower level than they really are.
