Lease Accounting Problems Dominate Restatements

Errors in lease accounting contributed to 22.5 percent of the weaknesses reported to the Securities and Exchange Commission (SEC) in April. During March, less than 10 percent of weaknesses reported were due to errors in lease accounting.

According to Compliance Week magazine, many of the disclosures came after Donald Nicolaisen, chief accountant for the SEC, sent a letter clarifying lease accounting rules to Robert Keupers, chairman of the Center for Public Company Audit Firms, an arm of the American Institute of Certified Public Accountants (AICPA). The letter focused on three lease accounting related issues:

  • Depreciation of costs for improving leased property
  • Recognition of periods of free or reduced rents
  • Landlord incentives for making improvements

Fifty-eight companies disclosed material weaknesses in their internal controls over financial reporting during April.

You may like these other stories...

A proposal issued by the Governmental Accounting Standards Board (GASB) last week explains how fair value measurement should be defined for state and local government financial reporting.The exposure draft, Fair Value...
By Jason Bramwell The board of trustees of the Financial Accounting Foundation (FAF) finalized a new policy on November 19 that provides the Governmental Accounting Standards Board (GASB) with direction on what...
By Jason Bramwell The Governmental Accounting Standards Board (GASB) is now offering a free online toolkit designed to assist preparers and auditors of state and local government pension plans with implementing new...

Already a member? log in here.

Upcoming CPE Webinars

Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 10
Transfer your knowledge and experience to prepare your team for the challenges and opportunities of an accounting career.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.