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.
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
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.
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.
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.
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.