Off-balance sheet financing implies that:

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Off-balance sheet financing refers to a situation where a company can obtain funding or incur liabilities without showing them on its balance sheet. Leases can be capitalized or not capitalized depending on the type of lease and the accounting rules applied. If leases are not capitalized, they are considered off-balance sheet financing because the lessee does not report the leased asset or the lease liability on its balance sheet. Instead, the lessee usually includes the lease payments in its income statement as an expense.

Off-Balance Sheet Financing Implies That