Are you prepared? You may or may not be aware that The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are changing the lease accounting that will create some work for corporations to be compliant. Basically, the recommendations will create more assets and liabilities on both public and private corporations’ balance sheets.
The new standards will greatly affect how leases will be negotiated going forward. All real estate professionals will be affected and an understanding of good and bad lease clauses will be essential to effectuating a favorable lease.
One of the strategies that will need to be employed as you look at your real estate portfolio is a renegotiation of some of your leases to optimize your balance sheet.
This raises a few questions that are relevant to this topic.
- WHY are we capitalizing leases?
- WHO has to capitalize leases?
- WHEN will we start capitalizing leases?
- WHAT leases need to be capitalized?
- HOW do you capitalize a lease?
Wildmor Realty is hosting a lunch and learn seminar on February 24, 2016 from 10:00 AM to 1:30 PM at Villa Christina to discuss everything you need to know about capitalizing leases. Call us now at 404.467.2121 – as space is limited – to reserve your space.
Contributed by Shan Morris, PrincipalShare