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   

 

Rufiyaa	Adversarial	Direct Representative	Lawyer
Load List	Output Tax	N16A Civil Court form	Corporate Culture
ERNIE	Know your client	Unpaid dividend	Zip Code
Yankee	ETA	Proactive	Payback
UK	Dividend yield	Decruit	adeem
Appraiser	Dividend	Remortgage	Tied loan
Gross domestic product - GDP	Pataca	Digital Certificate	Chattels
Customs Duty	Financial Auxiliaries	Export Shop	Withholding Tax
Administration order	Capital Gains	Tariff Quotas	Cable Modem
Killer bee	Merchant Bank	N218 Civil Court form	Default Judgment

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.