Off-balance sheet finance

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Revision as of 14:16, 4 May 2016 by imported>Doug Williamson (Make internally consistent.)
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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.


See also