What is Off Balance Sheet - OBS under BASEL? #ChartAcc
Friday, January 10, 2014
ChartAcc.com - OBS can be defined as follows:
Definition:
For more on Basel click here.
Definition:
- An asset or debt
- that does not appear on a company's balance sheet.
Impact:
- Company does not have legal claim or responsibility for.
Examples:
- Operating Lease
- Loans that are securitized and sold off as investments
- Partnerships, Joint ventures, Controlling Interests
OBS in relation to BASEL:
- Not showing liabilities in the Balance Sheet means overcasting of Financial resources
- Financial Rations can be manipulated like Debt : Equity Ratio
For more on Basel click here.
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