Off-Balance Sheet Financing. Accountingweb reported that SEC will closely scrutinize Off-Balance-Sheet Disclosures after it was once abused by Enron to hide debt and overstate profits.

In the past, companies have not been required to report how their current or future financial conditions might be affected by off-balance-sheet arrangements, which often involve entities formed to diversify risk and issue securities, leasing arrangements and other contractual obligations, the Journal reported.

Companies are beginning to report on their connection to an unconsolidated entity, including nature, size and amount of risk in SEC filings, but studies have shown that not all companies are embracing the requirements.