New accounting rule requires companies to report leases

The Enron accounting scandal happened nearly 15 years ago, but the announcement on Thursday of a new accounting rule shows that its impact is still being felt in corporate America.

The Financial Accounting Standards Board, the body that sets accounting rules, has issued a final rule that changes how companies account for most of their leases.

Though leases are similar to loans, companies have long been permitted to exclude most leases from their balance sheets. As a result, investors looking at a company’s financial statements may have struggled to calculate its true financial obligations. The new rule requires that the most common type of lease be included on a company’s balance sheet, potentially giving investors a more accurate picture of a company’s health.

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