While the new lease accounting standards will have larger implications for lessees than lessors, lessor lease accounting is impacted. Lessors also need to be aware of how the new standards impact their customers and how the standards may change customer leasing preferences.
Major challenges of the new lease accounting standards
Lessor Lease Accounting
1. How are variable payments accounted for differently under the new standards?
2. How are lessors affected by the new rules governing sale leaseback transaction accounting?
3. Is lessor software updated to accommodate the new accounting standards for their customers?
What the Experts Think
EY's To the Point publication covers the FASB decision to allow lessors to continue to recognize a reserve for uncollectible operating lease receivables under the loss contingency guidance after applying the collectibility guidance of the new standard.
EY's To the Point publication focuses on new FASB amendments to ease the fair value measurement of for lessors that are not manufacturers or dealers.
ELFA details why lessors need to be aware of the impact the new lease accounting standards will have on their customers.
Deloitte's document details important lender considerations with the adoption of IFRS 16, despite IFRS 16's limited direct impact on lessors.