Off Balance Sheet

Intangible assets tend to appear off-balance sheet. This means that certain assets or liabilities are not recorded in the traditional financial statements, such as the statement of financial position. In the context of intangible assets, this typically occurs when a company acquires or utilises intangible assets through leases, licenses, or contractual arrangements that are not required to be disclosed as formal assets or liabilities. While these off balance sheet intangible assets may not directly impact a company’s financial position, they can still have significant implications for the company’s operations, competitive advantage, and long-term value. It is important for CEOs to be aware of and understand the nature and impact of off balance sheet intangible assets in order to make informed strategic decisions.