Companies Need to React Now to Proposed FASB Lease Account Rules Changes
FASB lease account rules changes are definitely coming. Jones Lang LaSalle's Vivian Mumaw discusses what companies need to do today to ensure they are ready for the changes.
6/20/2011
In the first quarter of 2011, FASB reacted to an outpouring of comments on its proposed lease account rules changes. Though the organization listened and has pulled back its original highly rigorous pronouncement, these changes are definitely coming. In order to meet the requirements of these eventual changes, companies need to sort the required systems and resources before 2015. Companies need to start implementing now as it takes up to 18 months to prepare a company's real estate operations to adapt to these changes.
Jones Lang LaSalle's Vivian Mumaw discusses what companies need to do today to ensure they are ready for the changes. They need to implement new systems, new resources, and training. To accomplish this, companies must select a trusted lease administration partner that can develop a comprehensive solution. To implement a new technology platform that incorporates hundreds to thousands of leases and data points, companies must start today to ensure they have enough time to select the right partner and create a robust, flawless system. Corporate Real Estate executives will also need to work more closely with other business areas such as human resources, technology, and treasury.
The upcoming lease accounting changes are yet another business dynamic that is bringing the real estate function and the Corporate Real Estate Executive front and center within the corporation. The level of cross-functional skills and business savvy required to be successful in the CRE role will continue to increase as the function becomes more all-encompassing and complex.
Visit www.leaseaccountingchanges.com for more information, including the most recent updates on the FASB guidelines, a preparedness checklist to gauge your company's readiness, and a Lease Accounting Calculator to estimate the impact of the changes to your bottom line.
Recent Project Announcements
Pivot Bio Expands Hazelwood, Missouri, Operations
04/29/2026
Davis Timber Company Expands DeRidder, Louisiana, Manufacturing Operations
04/28/2026
Blevins Asphalt Expands Mount Vernon, Missouri, Maintenance Operations
04/28/2026
Niagara Bottling Plans Perth, New York, Production-Warehouse Operations
04/26/2026
Marubeni-Itochu Steel America Plans Osceola, Arkansas, Flat-Rolled Steel Operations
04/25/2026
Corderill Plans Meridian, Mississippi, Operations
04/25/2026
Ferrara Candy Plans Orangeburg County, South Carolina, Production Operations
04/25/2026
Blue Ops Plans Valdosta, Georgia, Manufacturing Operations
04/25/2026
Virginia Transformer Expands Rincon, Georgia, Production Operations
04/25/2026
AbbVie Plans Durham, North Carolina, Pharmaceutical Manufacturing Operations
04/24/2026
Air Liquide Plans St. James Parish, Louisiana, Production Operations
04/24/2026
Envoy Air Expands Little Rock, Arkansas, Operations
04/24/2026
Australia-Based Syenta Establishes Tempe, Arizona, Semiconductor Development Operations
04/23/2026
Mondi Expands Allegheny County, Pennsylvania, Production Operations
04/23/2026
Most Read
-
Economic Developer Role Shifting from Deal-Making to Systems Stewardship
Q1 2026
-
What Companies Need from Modern Manufacturing Sites
Q1 2026
-
Top States for Doing Business in 2024: A Continued Legacy of Excellence
Q3 2024
-
Capitalizing on the OBBBA Before the 2026 Cliff
Q1 2026
-
40th Annual Corporate and 22nd Annual Consultant Site Selection Survey Results
Q1 2026
-
Where Workforce Capacity Is Being Built — and Where It’s Being Deployed
Q1 2026
-
Last Word: Don’t Lose by Winning
Q1 2026