At the same time, AIG has also disclosed its notional amount and do not disclose its actual or potential liabilities in the case of credit default swaps. Major Banks also does not disclose their actual position in its super senior branches (Fiolleau, 2010). Therefore, off balance sheet has created various problems in the financial system of the countries. It is essential to generate awareness about the importance of off balance sheet and companies should make positive use of these statements (Farrell, 2010). In today’s environment, problems associated with off balance sheet have been reduced. Now, it is necessary for the companies to make clear statement and maintain transparency in their financial statements.

Still, companies do not provide sufficient transparency in their financial statements and there is not an effective enforcement mechanism. There is lack of transparency in the financial institutions that provide less information about the exposure to risks which are associated with derivative transactions. Due to which, investors have to face huge loss in making transactions in derivatives. There are various significant liabilities which are not included in the financial statements (Bloomberg, 2008).Companies should reveal its off-balance sheet to the auditors, so that investors can be able to get exact information of the companies.

Further, even after the crises, people cannot be able to get exact information about the bank asset and liabilities. All these need to be improved in order to maintain the proper financial statements, so that people do not have to face problems in making investments (Wells, 2011). According to off-balance sheet, some assets should be disclosed in the financial statement footnotes. With the help of this, auditors can be able to identify the information about the company financial position (Carney, 2009). It is identified that off-balance sheet is used by the company in order to reveal that company’s financial position is healthier. All these information should be managed properly, so that it can provide benefit to the investors and markets.