July 7, 2016
Some experts note that the recent Financial Accounting Standards Board’s (FASB) lease accounting standards might not mean too much change, at least from the current point of view of those who own and operate leased properties.
However, Mike McLain, Transwestern’s chief accounting officer, indicated that commercial real estate owners should understand that some strategic changes will be necessary. He also said that, depending on the strategy, the FASB regulations might mean more time in negotiating leases.
The infographic to the right, courtesy of Transwestern, demonstrates the differences in finance versus operating leases.