Accounting Rule to Increase Corporate Debt
Those nickels and dimes add up to $3 trillion. New financial reporting regulations in the U.S. and abroad are set to affect more than half of the world’s public companies — and they’ll be adding quite a bit of debt to the books. Businesses will now have to disclose their leasing commitments, adding transparency to rules that have been debated for decades. This should hit airlines, hotels and retail companies hardest — and the financial industry will likely have to adjust its expectations now that it knows more about what everyone owes.