Off-balance-sheet

The balance of External Financing ( en.: Off -balance-sheet ) is a term used in finance and accounting, with a balance-sheet financing is meant. Assets and liabilities have been mostly outsourced to special purpose entities that do not fall within the scope of consolidation of the reporting entity.

The best-known example of such a form of financing are the leasing and especially the sale and lease -back ( sale and leaseback ) in which both fixed assets, but also the corresponding debts can be eliminated from the balance sheet.

• Financing
• Accounting Law