# Off-Balance-Sheet

*Accounting & Reporting — Finicade finance glossary*

Off-balance-sheet arrangements keep obligations out of reported liabilities through structures the accounting rules don't require consolidating. Enron's special purpose entities are the notorious case, and operating leases were the largest legitimate example until standards changed. Each cycle of tightening is followed by new structures, which is why the notes on commitments and guarantees stay worth reading.

**Also known as:** off balance sheet financing, SPE, special purpose entity

**Related terms:** [Consolidation](https://finicade.com/glossary/consolidation), [Lease Accounting](https://finicade.com/glossary/lease-accounting), [Securitization](https://finicade.com/glossary/securitization), [Disclosure](https://finicade.com/glossary/disclosure), [Leverage](https://finicade.com/glossary/leverage)

Source: https://finicade.com/glossary/off-balance-sheet