Real Deal reports changes in operating leases

The Real Deal reports  that FASB’s new lease generally accepted accounting principles, which would effectively eliminating operating leases from the industry. “Capital leases will be recorded as an asset and liability, on the balance sheet, then depreciated and amortized on an income statement.” Al Petrillo, CEO of Studley, stated “We’re in a world where having something off the balance sheet is a bad thing, and this move will attempt to bring consistency of standards, consistency of reporting and transparency of reporting”

The Real Deal reported that Edward Kang, managing director of Studley, stated “Open issues include operating expenses, real estate taxes, and concessions. Don’t panic, they say, but be aware and have a checklist of how these changes might affect you and how you’ll address them.” For the full report, please go here.