Lease Accounting Changes: Are You Ready?
The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) both issued new lease accounting pronouncements, ASC 842 and IFRS 16 respectively. These new lease standards were designed to provide greater balance sheet transparency of leasing activities for organizations that issue financial statements in accordance with generally accepted accounting principles (GAAP). Non-U.S. based organizations are required to meet revised International Financial Reporting Standards (IFRS).
Most public registrants with large lease portfolios, found the 2019 adoption and compliance deadline to be arduous - requiring significant planning, resources and effort. Further, private and not-for-profit organizations following GAAP are still in the throes of transitioning to satisfy a 2020 compliance deadline. Going forward, post transition compliance work is needed as the impact from real estate is particularly acute - it is estimated that the majority of new assets and liabilities recognized recorded on balance sheets of lessees will be associated with commercial real estate and due to the implementation of these new lease standard.
Cushman & Wakefield's Lease Accounting Advisory Services (LAAS) is ready to help!
Cushman & Wakefield Lease Accounting Changes
New FASB lease accounting changes are here. This paper briefly highlights our lease accounting advisory services and support. Download
Cushman & Wakefield Lease Accounting - EMEA Perspective
This paper, authored by members of our Global Occupier Services team in the UK, covers the most essential elements of the lease accounting changes with a focus on EMEA. Download
Topic 1 - A Lease By Any Other Name
FASB's new lease standard Topic 842 issued on February 25, 2016 includes a new lease definition that converges with IASB's IFRS 16 issued earlier. Both standards focus on an identified asset and the right to control the use of that asset. Download
Topic 2 - Multinational Brief
The divergence between FASB's Topic 842 and IASB's IFRS 16 is of consequence to multinational corporations that have U.S. lease agreements that are in compliance with FASB but also have reporting responsibilities in different countries where IASB compliance is mandatory. Download
Topic 3 - New Logistics of Lease Reporting
New Standards for financial reporting of lease obligations Topic 842 (FASB) and IFRS (IASB) were issued in early 2016. These new rules will triggers widespread global change in transaction and portfolio management of commercial real estate leases. This paper explores considerations of industrial lease standards. Download
Topic 4 - New Lease Standard
The new FASB Financial Reporting Standard for leases was issued in Q1 of 2016. This topic paper takes a brief look at the arithmetic for full service operating leases under the proposed rules. Download
Topic 5 - New Lease Standard - 2019 Update
Will CBD occupants have a greater exposure to on-balance sheet lease impact? Download