Module 10. Reporting and Analyzing Off-Balance Sheet Financing : Leases Pensions. Off-Balance Sheet Financing. Off-balance sheet financing means that either assets or liabilities, or both, are not reported on the face of the balance sheet.
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Reporting and Analyzing
Off-Balance Sheet Financing:
GAAP identifies for two different approaches in the reporting of leases by the lessee:
For the lessee:
Leases - IFRS lease standards currently allow for operating leases, but the standards are such that it is very difficult for a lease agreement to qualify as an operating lease.
Pensions - U.S. GAAP permits deferral of actuarial gains and losses and then amortizes them to net income over time. IFRS companies can recognize all actuarial gains and losses in comprehensive income in the year they occur.