{"id":1004032838,"date":"2011-10-05T10:29:03","date_gmt":"2011-10-05T18:29:03","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004032838"},"modified":"2022-12-06T03:29:42","modified_gmt":"2022-12-06T11:29:42","slug":"back-to-the-future-what-happened-to-the-fasb-lease-accounting-changes","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/back-to-the-future-what-happened-to-the-fasb-lease-accounting-changes\/","title":{"rendered":"Back to the Future: What Happened to the FASB Lease Accounting Changes?"},"content":{"rendered":"<p><strong>By John DeCouto,<\/strong><br \/>\n<em>Senior Partner, Lee &amp; Associates<\/em><br \/>\n<a class=\"highslide\" href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2011\/10\/Net-Lease-John-DeCouto.jpg\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1004032839\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/back-to-the-future-what-happened-to-the-fasb-lease-accounting-changes\/net-lease-john-decouto\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2011\/10\/Net-Lease-John-DeCouto.jpg\" data-orig-size=\"350,490\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;}\" data-image-title=\"Net Lease &#8211; John DeCouto\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2011\/10\/Net-Lease-John-DeCouto.jpg?w=350\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2011\/10\/Net-Lease-John-DeCouto.jpg\" alt=\"\" title=\"Net Lease - John DeCouto\" width=\"150\" height=\"150\" class=\"alignright size-thumbnail wp-image-1004032839\" \/><\/a><\/p>\n<p>Our nation\u2019s credit has been downgraded, unemployment is at 9.2 percent and it seems like we are headed into a double-dip recession \u2013 whether or not it meets the technical definition of one. With all the noise going on, one process has not stopped moving forward: the &#8220;lease accounting standards&#8221; from the Financial Accounting Standards Board and the International Accounting Standards Board. What seemed to be a serious topic of concern for space occupiers and building owners has faded from discussion. But make no mistake \u2013 capitalization of all operating leases with few exceptions will have an effect on corporate credit in the near future.<\/p>\n<p>So just where is this process? Public input convinced the boards that they still had some critical issues to clarify and in March 2011 they set an agenda to provide additional guidance.\u00a0 In their July 2011 meeting, the boards decided to re-expose a revised draft for public comment. In their most recent meeting in September 2011, clarification on the Lessors accounting as well as other definitions were tentatively decided by the boards. While you can read the current status of these technical issues <a href=\"https:\/\/www.fasb.org\/cs\/ContentServer?c=FASBContent_C&amp;pagename=FASB%2FFASBContent_C%2FProjectUpdatePage&amp;cid=900000011123\">at this link on www.fasb.org<\/a>, it\u2019s valuable to see that the discussions are still in progress.<\/p>\n<p>Why is any of this important? As you can see the process is still moving forward and, in the near future, lease accounting will put nearly all operating leases on the balance sheet. The impact of this on a company\u2019s financial statement varies but EBITDA will be affected and corporate credit will be re-evaluated, potentially changing the dynamics of a net-leased deal. Looking forward into the future of lease accounting will help buyers and sellers underwrite deals so the risks of future surprises are limited.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>By John DeCouto, <\/strong><em>Senior Partner, Lee &amp; Associates<\/em><\/p>\n<p>The &#8220;lease accounting standards&#8221; from the FASB and the IASB seems to have faded from discussion, but capitalization of all operating leases, with few exceptions, will have an effect on corporate credit in the near future.<\/p>\n","protected":false},"author":1201,"featured_media":1004032839,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[37301],"tags":[],"class_list":["post-1004032838","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Back to the Future: What Happened to the FASB Lease Accounting Changes? - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/back-to-the-future-what-happened-to-the-fasb-lease-accounting-changes\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Back to the Future: What Happened to the FASB Lease Accounting Changes?\" \/>\n<meta property=\"og:description\" content=\"By John DeCouto, Senior Partner, Lee &amp; Associates The &quot;lease accounting standards&quot; from the FASB and the IASB seems to have faded from discussion, but capitalization of all operating leases, with few exceptions, will have an effect on corporate credit in the near future.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/back-to-the-future-what-happened-to-the-fasb-lease-accounting-changes\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2011-10-05T18:29:03+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-06T11:29:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2011\/10\/Net-Lease-John-DeCouto.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"350\" \/>\n\t<meta property=\"og:image:height\" content=\"490\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nicholas Ziegler\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/back-to-the-future-what-happened-to-the-fasb-lease-accounting-changes\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/back-to-the-future-what-happened-to-the-fasb-lease-accounting-changes\\\/\"},\"author\":{\"name\":\"Nicholas Ziegler\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/ff3a837f33daecfcf8978b405eaae20c\"},\"headline\":\"Back to the Future: What Happened to the FASB Lease Accounting Changes?\",\"datePublished\":\"2011-10-05T18:29:03+00:00\",\"dateModified\":\"2022-12-06T11:29:42+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/back-to-the-future-what-happened-to-the-fasb-lease-accounting-changes\\\/\"},\"wordCount\":308,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/back-to-the-future-what-happened-to-the-fasb-lease-accounting-changes\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2011\\\/10\\\/Net-Lease-John-DeCouto.jpg\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/back-to-the-future-what-happened-to-the-fasb-lease-accounting-changes\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/back-to-the-future-what-happened-to-the-fasb-lease-accounting-changes\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/back-to-the-future-what-happened-to-the-fasb-lease-accounting-changes\\\/\",\"name\":\"Back to the Future: What Happened to the FASB Lease Accounting Changes? 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