Disclosures of off-balance sheet arrangements

摘要

Additional disclosure requirements for off-balance sheet arrangements have been inserted into S410A of the Companies Act 2006 and are effective for years commencing on or after 6 April 2008. The new requirements state that where an off-balance sheet arrangement results in material risks or benefits to the company, certain information should be provided. This includes the nature and business purpose of any arrangements and the financial impact of such arrangements on the company. How might this change impact the financial statements? Concerns have been expressed about the new requirements, not least because they do not include a definition of the phrase 'off-balance sheet arrangement'. The Urgent Issues Task Force shared these concerns but concluded that it could not issue an Abstract without such a definition being in place.