According to a Credit Suisse First Boston report cited by Reuters, a rule changemade in Financial Accounting Standards Board Interpretation No. 46, Consolidation of Variable Interest Entities governing consolidation of existing off-balance-sheet entities, synthetic leases, and other kinds of units will add almost $400 billion in assetsand liabilitiesto the balance sheets of companies in the S&P 500.

The rule requires a company to consolidate a variable interest entity and addresses when a company should include in its financial statements the assets, liabilities, and activities of variable interest entities.

Discuss how the new rule will change how companies account for VIE.