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Sale of goods with ability to re-purchase
They’re no longer in inventory so they’re off the balance sheet and it looks like revenues and profits are boosted
However, following the principle of substance over form, those goods are not really sold and the sale proceeds are really a loan
But that doesn’t appear on the ‘balance sheet’ so they are casually referred to (and technically incorrectly!) as ‘off balance sheet items’ whereas the more awkward title should be ‘off statement of financial position items’
OK?
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