Proposed Lease Accounting Changes

On 8-20-09, Jones, Lang, LaSalle reported that 99% of corporate real estate executives it surveyed were unaware of the major proposed real estate accounting changes coming down the pike.

" These new leasing proposals will impact every type and size of business in the US both public and private."

"Lease accounting has been a stealth issue in the immediate pressing business matters in the current economic climate."

"The SEC reported in 2005 that US public companies alone will be forced to capitalize approximately $1.3 trillion in operating leases under the new rules.

"All leases, real estate and equipment will have to be capitalized on a reporting entity's balance sheet, public or private"

While still a proposal 'tis better to made aware now, than "surprised" later.

These proposals were made by the National and International Accounting Standards Board ( FASB & IASB)

I recommend talking with your CPA or accountant on this subject.


Bill McInerney