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   

 

Pre-Registration Expenses	Ground rent	MBPS	Artificial Intelligence
Undercapitalized	Relative Wage Flexibility	Economic Capital	Sub-Division
Bitcoin	Genesis block	Quantum	CEO
Forum	Banned And Restricted Goods	Journal	N170 Civil Court form
Troy pound	Buy To Let	Jus naturale	BRIC
Directors	White-collar worker	Business case	Decruit
Bid	Confiscation order	Pro hac vice	Eminant Domain
BIMBO	To arraign	Take Out	Benefits in kind
Descope	Exchange rate risk	In terrorem	Call Option
Oblique intent	Insurance	Advocate	In company Training

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.