Off balance sheet finance: Difference between revisions
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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. | ||
Revision as of 06:49, 15 October 2017
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.
