Off-balance sheet financing schemes take a variety of forms. An important class involves offsetting liabilities and assets, a practice traditionally frowned upon by accountants, and for good reason. This paper argues that attempts to limit offsetting can, if taken too far, result in the elimination of reporting alternatives which are useful when viewed from efficient contracting and information perspectives. Particular reference is made to the issues raised by mortgage securitisation in general, and the peculiar accounting method employed by one particular participant in the market (HMC Group PLC), to show the group accounting dimension of the problem. The position adopted here is that the recognition issue essentially boils down to whether the enterprise is judged to have an economic interest in the net or gross cash flow prospects afforded by the asset and liability in question.