Landlords Exempted from Proposed Lease Accounting Rules
Posted on Wed, Nov 02, 2011
Decision Could Increase Pressure On Rule Makers to Also Scrap Accounting Changes For Commercial Tenants.
Commercial property owners and landlords have been excluded from accounting standards changes that would require companies to capitalize 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) signaled at their meetings Oct. 19-20 that they will exclude lessors and owners of investment properties from the proposed rules. The panels expect to issue a revised exposure draft of the lease accounting standard in the first half of next year, with adoption of a final standard targeted for the second half of 2012.