Commercial Property Owners Exempted from Proposed lease Accounting Rules

Posted November 5, 2011

This is an informational post for landlords and property owners brought to our attention by Randyl Drummer at CoStar News.

Commercial real estate owners and landlords have been excluded from proposed accounting standards changes to require capitalizing real estate and equipment leases on their balance sheets. The International Accounting Standards Board (IASB) and the U.S.-based Financial Accounting Standards Board (FASB) indicated at their meetings Oct. 19-20 that they will exclude lessors and owners of investment properties from the proposed rules.

The Real Estate Roundtable said the proposed revisions to the rules could motivate tenants to seek shorter lease terms without renewal terms or rent contingencies to avoid complicated financial reporting and forecasting requirements.

I’ll turn you over to Randyl for more detail.

CoStar News – Article – Landlords Exempted from Proposed Lease Accounting Rules

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