- This topic has 1 reply, 2 voices, and was last updated 14 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
- Topics: 0
- Replies: 28
- ☆
The subsidiaries can have losses or liabilities that would have a negative impact on the consolidated F/S, e.g., lower consolidated profit, or higher gearing. The latter situation is known as ‘off-balance sheet financing.” This was at the core of the Enron scandal.
You can read more about this here: https://www.investopedia.com/articles/analyst/022002.asp#axzz1Owrz2AbN
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.