For some entities’ fiscal years beginning after December 15, 2018, we can expect to see the appearance of new property lease standards as enforced by the Financial Accounting Standards Board. Commercial real estate industry lease agreements will be subject to a new accounting standard intended to force the recognition of leases that run longer than twelve months as assets or liabilities on the books.
The recently announced Financial Accounting Standards Board changes to lease accounting won’t be in effect for three to four more years, but their potential impact on commercial real estate portfolios could be significant. New business could be the result — moving multi-year leases around on the balance sheet could tip said balances enough to prompt a round of property purchases or consolidations. Complying with the new changes could mean that and more for landlords — and the professional services that go with compliance are sure to be in a bit greater demand as the rules burn into business plans.
Talking a bit about potential impacts and timeframes is NAR Commercial Regulatory Policy Representative Stephanie Spear, who appears in a quick video outlining the changes potentials from the perspective of the commercial real estate industry.
Got questions abut the recent big changes in lease accounting standards? Mark the date: March 29, 2016, the Financial Accounting Standards Board (FASB) will host IN FOCUS: FASB Accounting Standards Update on Leases, a live webcast taking place from 1:00 to 2:00 p.m. EDT.
In the latest NAR Commercial Podcast, Bill Armstrong brings us up to date on new developments in lease accounting and on terrorism insurance legislation. The highlights:
The Commercial Real Estate 2Q Market Suvey shows market is stable and even improving in some areas of country. The survey provides an overview of market performance, sales and rental transactions.