In financial assignment help services, we know that a balance sheet or a statement of financial position is a summary of the financial balances of a sole proprietorship, a business partnership or a joint stock company. Assets, liabilities and ownership equity are the three main items listed in the balance sheet. A balance sheet assignment help is often described as a “snapshot of a company’s financial condition”. Of the four basic financial statements (income statement, statement of owner’s equity, cash flow statement and balance sheets), the balance sheet is the only statement which applies to a single point in time of a business’ calendar year. Off balance sheet assignment help is an important service of MyAssignmenthelp.com. For more help on balance sheet and off sheet assignment help, trust only MyAssignmenthelp.com’s finance assignment help.
Off balance sheet assignment help gives you complete understanding of the three main components of a balance sheet in which maximum students require finance assignment help:
Off balance sheet assignment help service helps you to understand each of these three aspects of finance assignment help. The main categories of assets are usually listed first and typically in order of liquidity. Assets are followed by the liabilities. Then owner’s equity is listed. The basic accounting equation is Assets + Liabilities = Owner’s Equity. Another way to look at the same equation is that assets equal liabilities plus owner’s equity. Looking at the equation in this way shows how assets were financed: either by borrowing money (liability) or by using the owner’s money (owner’s equity). For more information log on to MyAssignmenthelp.com for off balance sheet assignment help services.
Off balance sheet assignment help services also gives information on hidden liabilities. There are liabilities that cannot come up in the balance sheet. One of the most popular off balance sheet liability is the cost of operating lease. Operating lease is that type of lease which is usually acquired for a relatively short period of time, in comparison to the useful life of the asset which is leased out. Our Off balance sheet assignment help services explain this:
For instance, an aircraft which has a useful life of 25 years and is only leased out for 5 years then the cost of leasing the aircraft would fall under the category of operating lease. In accounting, there is a lot of speculation as to which cost should be included and which should not be included. Under the current accounting practices in the U.S. operating leases are not considered as a part of the on balance sheet expenses. For more on off balance sheet assignment help get finance assignment help services from MyAssignmenthelp.com.
Off balance sheet assignment help requires knowledge of different types of leases. There are two types of leases:
From the point of view of accounting, operating and financial leases have the following differences. You can find more on these differences from our off balance sheet assignment help:
An important component of our off balance sheet assignment help is making clear how companies use their off balance sheet assets and liabilities:
Off-Balance sheet expenses and Enron Scandal
Perhaps the best off balance sheet example is The Enron scandal. For the common shareholders and investors, off balance financing may often result in accounting scandals and corporate corruption as in the case of Enron Corporation. The Enron scandal was one of the greatest auditing scandals of the world and one of the best instances of off-balance sheet financing. Enron was started in 1985 by Kenneth Lay. It was formed by the merger of the natural gas pipeline companies, Houston natural gas and InterNorth IN 1985. In the early 1990s when the US congress deregulated the sale of natural gas, the company’s fortunes rose. It became the largest producer of natural gas in America and it share rose by 311 percent in stock markets in America.
However, it was noticed that the company was following dubious accounting standards and complex financial statements in order to dupe the common investors. The shareholder’s of the company filed a 40 billion dollar law suit, after the prices of its share plummeted to less than 1 dollar per share. The U.S. Securities and Exchange Commission (SEC) began an investigation in the midst of which the Company filed for bankruptcy. The auditing committee found that the company had used off balance sheet financing to hide its operating costs and inflate its profit figures. The company’s accounting practices began to spiral out of control when the Wall Street Journal uncovered the scandal. For more on the scandal and many such offline balance sheet examples log on to MyAssignmenthelp.com for off balance sheet assignment help.
The Enron scandal is perhaps the greatest of accounting scandal which used fraudulent accounting methods and principles to inflate its profit figures. One of the most common ways, a company commits accounting fraud is through the use of off-balance sheet expenses and liabilities. Fictitious sales, improper expense recognition, incorrect asset valuation, hidden liabilities and unsuitable disclosures are some of the other accounting malpractices. For more on such practices, log on to MyAssignmenthelp.com, to get offline balance sheet assignment help.
Off balance sheet expenses and such other types of hidden liabilities are often used by corporations to dupe the investors and get more money. Since the Enron scandal broke out, the government has brought in a number of laws debarring publicly traded companies using hidden expenses and liabilities such practices continue even today. For such measures and in order to prevent such off balance sheet examples from happening log on to MyAssignmenthelp.com.
Management students can now get off balance sheet assignment help in finance assignment help services from Australia’s premier finance assignment help site, MyAssignmenthelp.com. On the other hand, we also provide finance assignment help on a wide variety of other subjects as well. Our off balance sheet balance assignment help experts are student-friendly and we have a 24x7 helpline. So log on to our website in order to get custom made off balance sheet assignment help and improve your grade.