Objects clause and Off-balance sheet finance: Difference between pages
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' | 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. | |||
== See also == | == See also == | ||
* [[ | * [[Balance sheet]] | ||
* [[ | * [[Double entry]] | ||
* [[ED 2010/9]] | |||
* [[Finance lease]] | |||
* [[Gearing]] | |||
* [[IAS 17]] | |||
* [[Liabilities]] | |||
* [[Off balance sheet]] | |||
Revision as of 08:18, 25 July 2014
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.
