Real Estate Perspective on New Lease Accounting Standards
By John Corbett, MAI, ASA, FRICS and Marc R. Shapiro, MAI, MRICS
Key findings of the report include:
- Accounting Standards Update 2016-02, Leases (Topic 842) will have an impact on accounting practices across the real estate industry.
- The most significant change in the new lease guidance requires lessees to recognize right-of-use assets and lease liabilities for all leases, with few exceptions.
- Lessors and lessees must ensure that their finance teams understand these new guidelines and are prepared to determine the necessary data points, as more rigorous transparency standards now apply.