off-balance Sheet

off-balance Sheet
OBS A liability or other item that is not included in a *balance sheet. *Creative accounting techniques often aim at manipulating *financial statements through off-balance sheet transactions, "in which significant corporate resources, *income or *cash flow are never brought into... audited *financial statements because of the terms in which the relevant *contracted transactions are written (for example, *leases, *quasi-subsidiary companies, *joint ventures, and *contingent contracts)" (Lee, 1993, 144). *Generally Accepted Accounting Principles around the world have increasingly narrowed the scope for off-balance sheet activity. See also *substance over form.

Auditor's dictionary. 2014.

Игры ⚽ Нужен реферат?

Look at other dictionaries:

  • off-balance sheet — An asset, liability or commitment that is not reflected in a company s balance sheet is said to be off balance sheet. For example, off balance sheet financing is financing that is not shown as a liability on a company s balance sheet. + off… …   Law dictionary

  • off-balance-sheet — UK US adjective [before noun] ACCOUNTING ► used to describe assets or debts that a company does not need to show on its balance sheet (= financial statement for a particular period): »The company had $4 billion in off balance sheet debt that was… …   Financial and business terms

  • Off-balance-sheet — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • off-balance sheet — A term used to describe contingent liabilities, contingent assets, and commitments that are legally binding but are not assets or liabilities shown on the balance sheet under GAAP. Examples include loan commitments and letters of credit. American …   Financial and business terms

  • Off-balance-sheet — Die Bilanzexterne Finanzierung (en.: Off balance sheet) ist ein Begriff aus dem Finanz und Rechnungswesen, der eine bilanzneutrale Finanzierung meint. Vermögenswerte und Schulden werden hierbei meist in Zweckgesellschaften ausgelagert, die nicht… …   Deutsch Wikipedia

  • Off-balance sheet account —   Off balance sheet accounts are assets and liabilities that the bank expects in the future. This type of account is also known as contingent . Off balance sheet accounts are possible future obligations without outlay of funds …   International financial encyclopaedia

  • off-balance sheet arrangement — USA Defined in Rule 303 of Regulation S K as any transaction, agreement or other contractual arrangement to which an entity that is not consolidated with the company is a party, under which the company has one of the following: • Any obligation… …   Law dictionary

  • Off-Balance-Sheet Financing — A form of financing in which large capital expenditures are kept off of a company s balance sheet through various classification methods. Companies will often use off balance sheet financing to keep their debt to equity (D/E) and leverage ratios… …   Investment dictionary

  • Off Balance Sheet - OBS — An asset or debt that does not appear on a company s balance sheet. Items that are considered off balance sheet are generally ones in which the company does not have legal claim or responsibility for. For example, loans issued by a bank are… …   Investment dictionary

  • off-balance-sheet finance — OBSF A method of financing a company s activities so that some or all of the finance and the corresponding assets do not appear on the balance sheet of the company. By making use of OBSF a company can enhance its accounting ratios, such as the… …   Accounting dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”