View source for Off balance sheet finance

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.


==See also==

* [[Balance sheet]]
* [[Double entry]]
* [[Finance lease]]
* [[Gearing]]
* [[IAS 17]]
* [[IFRS 16]]
* [[Liabilities]]
* [[Off balance sheet]]

[[Category:Accounting,_tax_and_regulation]]