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You'll need to specify what type of Guarantee your speaking of.
The guarantee given for your products should be getting a reserve accrual for anticipated claims, which is certainly a BS item.
Most direct Guarantees given for financial reasons, as in Ging an affiliated Co so they can use some of your better Cos credit rating, or any G that impairs the available credit line other wise avail - even if it doesn't have a money cost involved - (which most all do), likewise has a balance sheet effect.
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∙ 16y ago
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Is bond a on balance sheet or off balance sheet item?
A bond is a liability that is recorded on the balance sheet as part of long term liabilities.
What is off- bank financing?
Refers to financing which does not appear on a balance sheet. For example, relatively strong corporation may guarantee the debtedness of subsidiary or a weaker company with whom it has a business relationship. The debt appears to the balance sheet of the company for which the guarantee is not recorded in the balance sheet of the issuing corporation.
Is Loan on balance sheet or off balance sheet?
Loan is on balance sheet
Difference between on balance sheet financing and off balance sheet financing?
In off-balance sheet financing assets are not shown in balance sheet while in balance sheet financing fixed assets shown in balance sheet.
Off balance sheet activities?
Off balance sheet activities are those activities which do not show any impact on balance sheet like operating lease in which company uses the assets but not shown in balance sheet.
What are the off balance sheet financing?
Off balance sheet financing means those agreement due to which asset is used by business but no affect on balance sheet like operating lease.
What is the difference between contingent liability and off balance sheet liability?
There is no difference between Contingent Liability and Off Balance Sheet Liability.
When do leases provides off balance sheet financing?
Operating lease provide the off balance sheet financing because in that case company enjoys to use the asset but it is not shown in balance sheet which keeps the ratios in favourable conditions.
What is off balance sheet items?
Off balance sheet items means assets which is used by business but not shown in business like lease asset etc.
Is factoring a off balance sheet item or not?
The off balance sheet allows small business to manage cash flow and credit certain risk. Factoring is the practice in which a small business receives a increase cash flow in their accounts receivable from a third party lender. This decreases their profit margins and lowers the amount the can borrow in the future.
How does the financial crisis impact the balance sheet?
Accounting Standards regarding off-balance sheet items are going to be tigtened in the forseeable future.
Are loan commitments an off balance sheet items?
yes
