Industry News

March 06, 2012 10:07:49 am

Impact of Proposed Lease Accounting Standards on Companies

Proposed changes to lease accounting rules are causing many companies to revise their leasing strategies.  Both the U.S. and international accounting standards boards are still finalizing the details of the proposed changes, but most companies expect to implement better tracking systems for leases, according to a new survey.

More than half of the 179 finance executives polled responded that they will make changes due to the new rules, which will require previously off-balance sheet lease liabilities to be reported on corporate balance sheets.  Half of the executives also expect their company’s debt-to-equity ratios will be permanently worsened, and more than half said their return-on-assets numbers will temporarily worsened. 

The survey was conducted by IBM and CFO Research Services.   For more on the survey, please see the Wall Street Journal.  To go directly to the full survey report, please click here.

Tags: Accounting Standards


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