Off-balance sheet finance: Difference between revisions
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imported>Doug Williamson (Delete link to superseded ED.) |
imported>Doug Williamson (Make internally consistent.) |
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Any form of finance that does not result in a corresponding liability appearing on | Any form of finance that does not result in a corresponding liability appearing on a reporting entity's 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. | ||
The effect of such financing and accounting methods is to show the | 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. | ||
Revision as of 14:16, 4 May 2016
Any form of finance that does not result in a corresponding liability appearing on a reporting 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 entity's borrowings and financial risk at a lower level than they really are.
