Off-balance sheet finance: Difference between revisions
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* [[Liabilities]] | * [[Liabilities]] | ||
* [[Off balance sheet]] | * [[Off balance sheet]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
Revision as of 14:29, 9 March 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.
