"Off-balance sheet liabilities" refers to liabilities outside the company's balance sheet. The report generally refers to debt financing of real estate companies but is not included in "interest-bearing debt", or financing from unconsolidated entities is not included in the report. Liabilities included in "on-balance sheet debt".

Off-balance sheet assets are generally accounting techniques permitted by Generally Accepted Accounting Principles (GAAP). Companies place some of their assets, including subsidiaries, loans, derivatives, etc., in this item to reduce company debt and Capital ratio; off-balance sheet assets do not need to be listed on the balance sheet, but must be listed in the form of notes in the financial report. R&D investment, organizational construction, brand channels, etc. are all off-balance sheet assets.

Extended information

Off-balance sheet financing has gradually become an important part of analyzing the liabilities of real estate companies for two reasons:

First, because off-balance sheet financing is Important financing channels for real estate companies have been supplemented.

Secondly, off-balance sheet financing has led to the invisibility of debt and the optimization of financial indicators, which can easily lead to investors overestimating the solvency of real estate companies.

Therefore, it is necessary to pay corresponding attention to real estate companies with large off-balance sheet financing and make appropriate adjustments when analyzing liabilities.

Baidu Encyclopedia - Off-balance sheet assets

Baidu Encyclopedia - Off-balance sheet liabilities