A few weeks ago we made a post referencing a white paper published by PricewaterhouseCoopers about the impact the changes being made to FAS13 lease accounting standards coming into effect January, 2012 will have on corporate real estate.
The new standard will shift from rents being reported as operating expenses to being capitalized as future rent obligations putting millions/billions onto the balance sheet and bringing all occupancy costs beyond rent into the cross hairs of the CFO/controllers purview.
Don’t wait to get the memo, get a copy of the white paper by going to >>> http://www.pwc.com/us/en/asset-management/real-estate/publications/real-estate-lease-accounting.jhtml.
Don’t delay, go get the paper and begin planning now for the impact these changes will have on you and your CRE department. Once you’ve read it, be sure your next call is to your company’s CFO to request a meeting to discuss the impact.