Off-Balance Sheet Financing: A Weapon to Commit White-Collar Crime

Author(s)	Dr. Subhajit Ghosh
Country	India
Abstract	Off balance-sheet financing is an accounting technique in which a debt for which a company is obligated does not appear on the company's balance sheet as a liability. Keeping debt off the balance sheet allows a company to appear more creditworthy but misrepresents the firm's financial structure to creditors, shareholders, and the public. The sudden collapse of energy-trading giant Enron Corporation is attributed in large part to the firm's off-balance-sheet financing through multiple partnerships. Off-balancing financing is an aspect of creative accounting. In this paper an attempt has been made to highlight various aspects of off-balance sheet financing as well as to provide some suggestive measures so that such mal practice can be eradicated.
Keywords	On-balance sheet financing; Off-balance sheet financing; Liabilities; Debt; Accounting Standards; Disclosures
Field	Mathematics > Economy / Commerce
Published In	Volume 5, Issue 3, May-June 2023
Published On	2023-05-27
DOI	https://doi.org/10.36948/ijfmr.2023.v05i03.3285
Short DOI	https://doi.org/gr9rzx

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