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Off balance sheet transactions

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UK GAAP

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Abstract

Off balance sheet finance can be difficult to define, and this poses the first problem in discussing the subject. The term implies that certain things belong on the balance sheet and that those which escape the net are deviations from this norm. But there are as yet no authoritative general principles which determine conclusively what should be on the balance sheet and when. As discussed in Chapter 2, the ASB is attempting to establish such principles in its Statement of Principles project and has used these as the basis of FRS 5 — Reporting the substance of transactions — which directly addresses the issue of off balance sheet finance.

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References

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  2. ED 42, Special purpose transactions, ASC, March 1988, para. 56.

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  3. Ibid., para. 57.

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  4. Ibid., para. 58.

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Authors
  1. Mike Davies
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  2. Ron Paterson
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  3. Allister Wilson
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© 1997 Ernst & Young

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Davies, M., Paterson, R., Wilson, A. (1997). Off balance sheet transactions. In: UK GAAP. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-13819-7_16

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