A new era for lease accounting: Understanding the impacts from a CRE perspective
In January 2016, the IASB released a new lease accounting standard, IFRS 16. This is expected to be closely followed by the publication of a new standard from the FASB, governing body responsible for US GAAP.
Listed companies have an estimated $28tn of ‘off balance sheet’ lease commitments, which under the new standards will come ‘on balance sheet’. This represents a fundamental shift in the approach to reporting lease obligations and will have significant knock on effects on for Corporate Real Estate, from strategy and policy setting at one end of the spectrum to data management and reporting at the other.
Cushman & Wakefield’s latest release summarises the key changes to lease accounting, provides a high level guide to its application and details the key impacts and considerations for CRE professionals.