Study: Lease Accounting Standards Will Cost, Big-Time ? World ...

Feb 20, 2012

Study: Lease Accounting Standards Will Cost, Big-Time

Globestreet.com reported: The?Financial Accounting Standards Boardand the?International Accounting Standards Board?are moving closer, albeit slowly and with re-exposed drafts along the way, to their goal of new converged accounting standards for leases.? Although the two accounting-standards setters have re-exposed a draft, thus pushing?the day of reckoning?off, there is little doubt that it is coming.

Essentially, the standards will require tenants to place leases on their balance sheets?an enormous line item that consists of anything from office, business and farm machinery to, yes, real estate.

The costs to businesses are expected to be enormous.?The Equipment Leasing and Finance Association, which has been tracking the issue, notes that leases account for hundreds of billions of dollars in transactions annually throughout the global economy.

Now, a report commissioned by the?US Chamber of Commerce,?Real Estate Roundtable,?Building Owners and Managers Association,?International, NAIOP ? Commercial Real Estate Development Association,?NAIOP ? Inland Empire Chapter, NAIOP ? Southern California Chapter?and?National Association of Realtors, takes a look at what the new rules could mean for commercial real estate, specifically. It isn?t pretty.

Read more:?http://www.globest.com/news/12_288/washington/finance/Study-Lease-Accounting-Standards-Will-Cost-Big-Time-318760.html

Source: http://www.worldleasingnews.com/news/study-lease-accounting-standards-will-cost-big-time-2/

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