Report Analyzes Real Estate Accounting Changes’ Impact on Corporate Financial Results
The significant impact that changes to U.S. and international standards for accounting for real estate leases will have on corporate balance sheets and financial results is the focus of a new report by CB Richard Ellis (CBRE).
The significant impact that changes to U.S. and international standards for accounting for real estate leases will have on corporate balance sheets and financial results is the focus of a new
report by CB Richard Ellis (CBRE).
The report also comments on the impact of mark-to-market valuations for real estate assets in a distressed environment as well as the proposed elimination of off-balance sheet treatment of operating leases. These changes may significantly impact the reporting of assets on the balance sheet and the recognition of earnings on the income statement, says CBRE.
The potential re-emergence of capitalizing operating leases (bringing them onto the balance sheet) and the continued evolution of mark-to-market valuation protocols may have a more than $1 trillion impact on U.S. corporations, according to CBRE.
In addition to highlighting the pending changes from the U.S. Financial Accounting Standards Board and the International Accounting Standards Board, the report discusses preemptive actions corporate real estate managers can take in the areas of portfolio planning and compliance.
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