I have been asked to create off-balance-sheet accounts to track contingent liabilities for reporting purposes. Is there a standard way to do this in MYOB? Does MYOB support off-balance-sheet accounts?
I would like to know how other organisations manage this requirement.
Any examples or best practices would be appreciated.
Thanks in advance,
Hi rmiro,
Great question! MYOB doesn’t have a separate off-balance-sheet account type. If you post amounts to an asset or liability account, they become part of the ledger and may flow through your financial reports, so creating a “contingent liability” account and posting memo amounts isn’t usually a clean off-balance-sheet solution. A common way to keep things tidy is to maintain a separate contingent liability register or spreadsheet.
You can then include a summary in your management reporting or financial statement notes, where appropriate. If you only need a reminder inside MYOB, a clearly labelled header can help organise the Accounts List, but avoid posting transactions to it. Because the accounting treatment and disclosure can depend on your reporting framework, it’s best to confirm the final approach with your accountant or auditor. The Set up accounts guide covers the available account setup options. That way, the general ledger stays clean and your contingent liabilities still have a proper record.
Cheers,
Doreen
