Cov-lite and Off balance sheet: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Create the page. Sources: linked pages.)
 
imported>Doug Williamson
(Update for FRS 102)
 
Line 1: Line 1:
''Long term funding''
(OBS).


Abbreviation for 'covenant-lite'.
1.


In financing where assets and liabilities are acquired indirectly by an entity by way of a financial structure but are not purchased directly by the entity, in such a way that the liabilities are not required to be disclosed in the entity's balance sheet.


==See also==
The trend in financial reporting over time has been to restrict the types of structures which may be accounted for 'off balance sheet' in this way (instead requiring the liabilities to be appropriately reported in the balance sheet of the reporting entity).
*[[Covenant]]
 
*[[Covenant-lite]]
 
2.
 
The indirect financial reporting of the related liabilities within the notes to the financial statements - or possibly not at all - rather than directly on the face of the balance sheet.
 
Sometimes known as 'off balance sheet treatment'.
 
 
Relevant accounting standards include Sections 2, 11, 12 and 23 of FRS 102.
 
 
== See also ==
* [[Balance sheet]]
* [[FRS  102]]
* [[Off-balance sheet finance]]
 
[[Category:Accounting,_tax_and_regulation]]

Revision as of 11:15, 6 November 2015

(OBS).

1.

In financing where assets and liabilities are acquired indirectly by an entity by way of a financial structure but are not purchased directly by the entity, in such a way that the liabilities are not required to be disclosed in the entity's balance sheet.

The trend in financial reporting over time has been to restrict the types of structures which may be accounted for 'off balance sheet' in this way (instead requiring the liabilities to be appropriately reported in the balance sheet of the reporting entity).


2.

The indirect financial reporting of the related liabilities within the notes to the financial statements - or possibly not at all - rather than directly on the face of the balance sheet.

Sometimes known as 'off balance sheet treatment'.


Relevant accounting standards include Sections 2, 11, 12 and 23 of FRS 102.


See also