On February 25, 2016 the Financial Accounting Standards Board (FASB) released their long-awaited standard on lease accounting. The new U.S.-based model calls for lease transactions to be reflected on company balance sheets, among other changes intended to improve the accuracy and transparency of lessees’ financial reporting.
This new standard will impact public and private companies alike. The changes will take effect for public companies in fiscal years beginning after Dec. 15, 2018, and for private companies in annual periods beginning after Dec. 15, 2019.
Lessees can expect to see an increase in balance sheet liabilities (and assets) that may require re-negotiation of existing bank loan covenants and/or changes to financial systems and controls governing leasing arrangements.
Click here to read more about the key concepts incorporated in the new model and their impact on your business. Contact a BST Real Estate Industry Service team member for more information at (973) 472-6250.
Posted on February 25, 2016 at 1:56 PM