Management Glossary

  Search Results: off-balance sheet financing
off-balance sheet financing

Funding of a company's assets and/or operations in a way that it does not show up on the company's balance sheet, i.e., it does not show up as an asset, a liability or owners' equity. Examples of off-balance sheet financing include operating leases (the costs of which can be recorded as expenses rather than assets or liabilities) and joint ventures (wherein the the joint venture company assumes liabilities and holds assets that would otherwise have to be assumed and held by the joint venture owners if they did the joint venture's business in-house.)

Contributed by: Managerwise Staff
See: operating lease, joint venture

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