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The Financial Accounting Standards Board Issued Statement of Financial Accounting

Question 108

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The Financial Accounting Standards Board issued Statement of Financial Accounting Standard No.133,"Accounting for Derivatives and Hedging Activities," as part of its project on financial instruments and its effort to deal with off-balance-sheet financing.
Explain what is meant by the term "off-balance-sheet financing" and give two reasons why "off-balance-sheet financing" is attractive to the management of an enterprise.

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Off-balance-sheet financing is an attemp...

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