Study On Off-balance-sheet Financing And Its Financial Implication

Off-balance-sheet financing phenomenon exists in our country and abroad, there are different degrees, it is to generate development in the rise of the new economy and the development of derivative financial instruments in the background. Assets and liabilities formed by off-balance-sheet financing are not confirmed in balance sheet, which would change the corporation’s real size and income level of assets and liabilities, to a certain extent, played a landscaping and beautification of the capital structure of the financial situation of the role. Table influence foreign financing for corporate financial condition, and have relevant financial information users have some misleading, affecting their decision making.Firstly, the basic theory of off-balance-sheet financing are described, analyzed and summarized by scholars’ domestic and aboard for the definition of the characteristics of the definition of off-balance sheet financing summarized. And review the relevant literature on the causes of off-balance sheet financing of science were analyzed from two perspectives of economics and accounting, is relatively widely used sheet financing in the form of a summary presentation. Then describes the development status sheet financing in our country, raised the issue of off-balance sheet financing generated in the development of our country, and secondly on the table a detailed analysis of the financial impact generated by external financing, including from the positive side and a negative one financial reporting impact of the user’s face, the impact on financial indicators and the impact on the financial risk of the three aspects departure. Followed by Lehman Brothers for "Repo 105" use case, a detailed analysis of the financial impact of off-balance sheet financing generated.This paper concludes with a business perspective and from the point of the two relevant recommendations and measures to promote their use to regulate, for enterprises to solve some of the financial problems faced especially in the face of financing difficulties SMEs proposed new direction, become the future economic development boosters and catalysts.