Off balance sheet finance

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Revision as of 10:20, 18 August 2016 by imported>Doug Williamson (Removal of hyphen from entry title)
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Any form of finance that does not result in a corresponding 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.


See also