Chages to accounting standards will affect office leases

The Financial Accounting Standards Board, which sets American standards on accounting practices, is mulling over proposed changes to its generally accepted accounting practices (GAAP) regarding the recording of office leases.  The changes would require companies to book leases as assets and liabilities on their balance sheets, a move that will have the effect of making rent more expensive.  Office leases will be booked as a long term liability, with the entire lease on the books from day one, and the right to use the space as an asset.  This added liability will reduce the operating cash that companies have available and could potentially weaken an already struggling economy.  The new rules wouldn’t go into effect until 2013  but may be completed in 2012.  Read the post below:

http://www.costar.com/News/Article/Decision-On-Lease-Accounting-Rule-Changes-Likely-Pushed-Back-Until-2012/131352?ref=100&iid=245&cid=6707B0B5885DE2993BAB818312B089DC

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