Reading the accounts
Off-balance-sheet
Obligations that do not appear as liabilities on the balance sheet but still commit the company.
How it works
Operating leases were the classic example before accounting rules changed to bring most of them on. Others remain: guarantees, certain joint ventures, and some contingent liabilities.
They appear in the notes to the accounts rather than on the face of the statements, which is exactly why the notes are worth reading.
Related terms
More in Reading the accounts
- Operating cash flow
- Net margin
- Operating expenses
- Net income
- Operating income
- Net debt / EBITDA
- Operating leverage
- Operating margin
All 51 Reading the accounts terms · The full glossary, 433 terms
Educational reference only. Nothing here is investment advice or a recommendation to buy or sell anything, and tax treatment depends on your own circumstances and the country you are in.