July 5, 2016
Corporate real estate executives are not planning strategic changes in response to the Financial Accounting Standards Board (FASB)’s new lease accounting standards, according to a CBRE Group Inc./PwC US survey. The FASB standard requires most leases to be recorded on a company’s balance sheet by 2019 (2020 for private companies). Still, 43% of those surveyed indicated they don’t expect much in the way of change.
“The size and complexity of companies’ lease portfolios will determine the challenge of transitioning to the new standard,” said Jeff Beatty with CBRE. “We believe that after companies formalize the process of gathering the relevant data, they will be surprised to find that they may have more leases than they originally thought.”