FASB Leasing Proposal - Y2K or Meh?

Oct 23rd 2010
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As we reported in August, FASB released an Exposure Draft of a Proposed Accounting Standards Update with proposed amendments to FASB Codification Topic 840: Leases. The IASB concurrently issued its own proposal.

How Will Proposal Impact You?
What will the impact of the leasing proposal be? One real estate executive (quoted below) has said it could be the 'Y2K for the real estate industry,' while blogger Adrienne Gonzalez, author of the Jr. Deputy Accountant Blog, appears to catalogue the accounting proposal as a 'meh' type event in the overall scheme of things, comparing it to 'shuffling the deck chairs on the Titanic.'

Here's the quote from an Oct. 21 article in the Philadelphia Business Journal, FASB Change Would Put Leases On Firms' Balance Sheets:
 

“There’s a bit of denial out there,” said Lou Battagliese Jr., a principle with Jackson Cross Real Estate Partners, who advises corporate clients in their real estate needs. “The experts believe it’s just a question of when, not if. The joke is this is Y2K for the real estate industry.”
...
After taking an inventory, Battagliese advises corporate tenants to take a stab at determining the financial impact of accounting leases on a balance sheet, particularly since there is likely to be a “significant first-year impact.”

How can you have an impact on the leasing proposal? Read more here to learn about opportunities to hear FASB board, staff, and others discuss the proposal, and how to have an impact on the final standard (i.e. on the final amendment to Codification Topic 840: Leases).  

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