Off balance sheet finance: Difference between revisions
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imported>Doug Williamson (Remove surplus link.) |
imported>Doug Williamson (Remove surplus link.) |
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* [[Balance sheet]] | * [[Balance sheet]] | ||
* [[Finance lease]] | * [[Finance lease]] | ||
* [[Gearing]] | * [[Gearing]] | ||
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.
