Off-balance sheet finance

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Revision as of 11:42, 6 November 2015 by imported>Doug Williamson (Delete link to superseded ED.)
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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