off-balance sheet arrangement


off-balance sheet arrangement
USA
Defined in Rule 303 of Regulation S-K as any transaction, agreement or other contractual arrangement to which an entity that is not consolidated with the company is a party, under which the company has one of the following:
• Any obligation under a guarantee contract that has any of the characteristics identified in paragraph 3 of FASB Interpretation No. 45, Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others (November 2002), and that is not excluded from the initial recognition and measurement provisions of that interpretation pursuant to paragraph 6 or 7.
• A retained or contingent interest in assets transferred to an unconsolidated entity or a similar arrangement that serves as credit, liquidity or market risk support to that entity for those assets.
• Any contingent or other obligation under a contract that would be accounted for as a derivative instrument except that it is both indexed to the company's own stock and classified in stockholders' equity in the company's statement of financial position, and therefore excluded from the scope of FASB Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities (June 1998), pursuant to paragraph 11(a) of that statement.
• Any contingent or other obligation arising out of a variable interest, as referenced in FASB Interpretation No. 46, Consolidation of Variable Interest Entities (January 2003), in an unconsolidated entity that is held by and is material to the company, where that entity provides financing, liquidity, market risk or credit risk support to, or engages in leasing, hedging or research and development services with, the company.
See also

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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