Japan to classify leases as assets, in line with global standards

New rule boosts transparency but expected to hit return ratios

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Operating leases are used by such sectors as real estate, logistics and marine transport.

TAKEHIKO HAMA, Nikkei staff writer

TOKYO -- Japanese companies will be required to list lease contracts as assets on their balance sheets under planned accounting rule changes, a move that would erode their return on assets but increase the transparency of corporate finances.

The Accounting Standards Board of Japan will meet Friday to start discussing reforms that will bring Japanese rules more in line with international standards, with the aim of reaching an agreement by the end of the month.

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