When I give a minister an order, I leave it to him to find the means to carry it out. – Napoleon Bonaparte
Off-balance sheet financing | Glossary
Definition:
Off-balance sheet (OBSF) financing is an accounting practice whereby companies record certain assets or liabilities in a way that prevents them from appearing on the balance sheet. It is used to keep debt-to-equity (D/E) and leverage ratios low, especially if the inclusion of a large expenditure would break negative debt covenants.
Further Reading:
Book: The Firm by Duff McDonald