DOUBLE LEVERAGE Definition

Bookmark and Share

DOUBLE LEVERAGE usually refers to a situation where a holding company raises debt and downstreams it as equity capital, or subordinated debt, to a subsidiary, i.e. it is the use of debt by both the parent company and the subsidiary, in combination with the companys equity capital, to finance the assets of the subsidiary.

Learn new Accounting Terms

ATTESTATION RISK is the risk the CPA may unknowingly fail to modify the report
on management’s assertion. It is composed of inherent risk, control risk, and detection risk.

MANUAL CONTROLS are controls performed manually, i.e., not by computer.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.