Off balance sheet finance: Difference between revisions
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imported>Doug Williamson (Removal of hyphen from entry title) |
imported>Doug Williamson (Remove surplus link.) |
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Any form of finance that does not result in a | Any form of finance that does not result in a finance liability appearing on a 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 entity's borrowings and financial risk at a lower level than they really are. | |||
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. | |||
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* [[Balance sheet]] | * [[Balance sheet]] | ||
* [[Finance lease]] | * [[Finance lease]] | ||
* [[Gearing]] | * [[Gearing]] | ||
* [[ | * [[IFRS 16]] | ||
* [[Liabilities]] | * [[Liabilities]] | ||
* [[Off balance sheet]] | * [[Off balance sheet]] | ||
* [[Securitisation]] | |||
* [[Securitisation special purpose vehicle]] | |||
[[Category: | [[Category:Accounting,_tax_and_regulation]] | ||
Revision as of 05:35, 20 July 2022
Any form of finance that does not result in a finance liability appearing on a 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.
