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In accounting, "off-balance-sheet" (OBS), or incognito leverage, usually describes an asset, debt, or financing activity not on the company's balance sheet. Total return swaps are an example of an off-balance-sheet item. Some companies may have significant amounts of off-balance-sheet assets and liabilities.
The distinction between sales-type and direct financing leases has changed: whereas in ASC 840 the test was whether the fair value of the leased asset was different from the lessor's cost or carrying amount (if so, the lease is a sales-type lease), in ASC 842, any lessor lease that meets the lessee finance lease tests (based on rents and ...
From a regulatory perspective, full credit guarantees are considered equivalent to on-balance sheet financing, because they expose banks to the same risks as assets on the balance sheet. Therefore, if the bank offer full credit guarantee, the backing assets will be on the balance sheet, thus are included in the calculation of capital needed to ...
For example, before the 2007–2008 financial crisis, investment banks financed mortgages through off-balance-sheet (OBS) securitizations (e.g., asset-backed commercial paper programs) and hedged risk through off-balance sheet credit default swaps. Before the 2008 financial crisis, major investment banks were subject to considerably less ...
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You may still be offered 0% balance transfers if your credit score is above 720, but those offers are dwindling rapidly. Most offers I've seen lately have been for 6 or 12 months at interest rates ...
Monoline insurers play a critical role in modern-day Credit Enhancements; they are more effective in (a) off-balance-sheet models creating synthetic collateral, (b) sovereign ratings' enhancement with built-in asset derivatives and (c) cross border loans with receivables and counterparties in the domain and jurisdiction of the monoline insurer.
For example, the accounts payable amount of $500 for a tool purchase belongs on the liabilities side of the balance sheet. But the value of the tool itself belongs on the assets side of the ...