Off balance sheet finance: Difference between revisions
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imported>Doug Williamson (Removed unavailable category) |
imported>Doug Williamson (Link with IFRS 16) |
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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 reporting 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 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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* [[Gearing]] | * [[Gearing]] | ||
* [[IAS 17]] | * [[IAS 17]] | ||
* [[IFRS 16]] | |||
* [[Liabilities]] | * [[Liabilities]] | ||
* [[Off balance sheet]] | * [[Off balance sheet]] | ||
Revision as of 06:41, 15 October 2017
Any form of finance that does not result in a finance liability appearing on a reporting 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 entity's borrowings and financial risk at a lower level than they really are.
