Business terms and jargon explained. Your business dictionary

What is Off Balance Sheet

If an asset is rented or is on a lease agreement where you do not become the owner. This Asset and its cost is not show on the balance sheet (off balance sheet) but is charged to the profit and loss account. This has a tax implication where the cost reduces the profit and therefore reduces your tax for that period.

If you rent fleet of cars worth 100,000 at 15,000 a year then this 15,000 is a cost and charged to the profit and loss account for that year. There is no mention of the fleet in the balance sheet. If you purchased the fleet of cars then they will be shown in the balance sheet at cost and depreciation is charged to the profit and loss account.

<- Go Back
Business Terms Home page

Search jargon and terms database to learn more:-

A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z


Search Term   

Retail Financial Services Appellant Tangible Assets Stamp duty
Passing off PayPoint Abscond Charge Certificate
Net Assets Core Competencies Perjury Apple polisher
Terms of Reference Two-comma Constrained Discretion Kilowatt hours (kWh)
AFAIK LIBO Spoilage Tailwinds
Pecuniary Legacy Yen Service mark Joint Tenants
Alibi Hidden Economy JCCC Net income
Zip Code Judiciary Optimist Statutory register
Free Zone Goods Yuppie Job production Lamfalussy
Project brief Kwanza Penetration Testing Title

Term created / updated 2006-04-24 11:55:35

Knowledge is the key to success. That is why we have gone to great lengths to get you these business terms, and to explain them in Plain English so it is very easy to understand. Getting the right understanding and knowing your business jargon will keep you informed among your peers.

Copyright © 2004-2019 Scopulus Limited. All rights reserved.