Posts by Ed Muna
Lease Accounting Changes and How the Renewal Option Became Your Latest Liability
Ed Muna on August 21, 2017
The Financial Accounting Standards Board (FASB) recently issued an update (ASC 842) that will require businesses to rethink how they structure real estate leases going forward. The code change, which will be implemented in 2019 (2020 for private companies), requires companies to put the capitalized value of their lease obligations on the balance sheet as a liability and asset (“Lease Liability” and “Right of Use Asset”). As it currently stands, almost all lease costs are limited to the income statement and might only appear on the balance sheet as a footnote. Because there is no grandfathering for existing leases and financial statements include a two-year look back, the decisions being made today will impact the financial statements of the future. This has many decision-makers taking a closer look at leasing transactions to see how this liability can be reduced.
Read MoreLighten Your Load: How Lease Administration Services Are Saving Executives Time and Money
How Your Landlord’s Capital Spending Is Hurting Your Bottom Line
Why You Haven’t Audited Your Lease (And Why You Should)
January Office Rent Statements Likely Hold Surprises
Understanding the Estoppel Certificate
FASB 13: How New Accounting Standards Could Impact Your Business
Operating Expense Reconciliations: What to Look For in Your Annual Statement
The Incredible Growing Buildings: Understanding Your Rentable Square Footage
Hughes Marino’s Lease Audit Service Saves Tenants Big Bucks
Supervisor Dave Roberts Establishes Grant Review Panel
Erroneous Charges by Landlords Top $2 Million in 2012
Understanding the Importance of Your “Base Year” Operating Expenses
Volunteering: A Way of Life for the Munas
Ed Muna