On Balance Sheet

Formal

The listing of all the assets of a company in its Balance Sheet so that investors are clear about exactly what is involved in generating profits. Some types of transactions - contract hire, and rental - do not involve the company owning the item, but yet they still have use of it - and these may be ‘Off Balance Sheet’ and not identifiable as used in the business. ‘On Balance Sheet’ is a term to describe rules (see FRS 17) that state when assets must be listed.

Real-world Example

A company that buys a fleet of trucks outright must list them as assets 'on balance sheet' - unlike a company that leases similar trucks under a contract structured to stay off balance sheet.