Lessor Lease Accounting

Lessor Lease Accounting

While the new lease accounting standards will have larger implications for lessees than lessors, lessor lease accounting will be impacted. Lessors also need to be aware of how the new standards will impact their customers and how the standards could change customer leasing preferences.

Key Considerations

1. How are variable payments accounted for differently under the new standards?

2. How will lessors be 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

Links to Additional Resources

Technical Line: How the new leases standard affects real estate entities

EY's real estate technical line publication focuses on the impacts of the new leases standard to an industry that is primarily composed of lessors, but also may have certain lessee obligations that should be considered.

To the Point: FASB proposes more amendments to help lessors apply the new leases standard

EY released a document covering proposed amendments to help lessors adopt the new lease accounting standard by addressing the question of how to define the fair value of the underlying asset and a conflict between ASC 842 and ASC 942.

More changes to ease lessor adoption of the new leases standard

This PwC document covers several tentatively approved changes to lessor accounting under the new leases standard, including changes to tax and variable payment cost accounting.

Organizational checklist for lessors to meet lessee needs under the new lease accounting rules

ELFA details why lessors need to be aware of the impact the new lease accounting standards will have on their customers.

Leases – Part III: Lessor accounting and transition

June 1, 2016

This Webcast from KPMG addresses the requirements of ASC 842 for the lessor accounting model.

Lessor accounting: how the new lease and revenue standards interact

March 16, 2016

PwC details the changes that the new FASB standards will have on the lessor accounting model.

IFRS 16 - Leases: new financial reporting standard Potential implications for lenders

Deloitte's document details important lender considerations with the adoption of IFRS 16, despite IFRS 16's limited direct impact on lessors.

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