Tuesday, June 11, 2019
Not Much Fizz in LaCroix Right Now

Wednesday, May 29, 2019
An Example of Calcbench, Excel, and Insight

Monday, May 20, 2019
Research Paper: Capex Spending

Thursday, May 16, 2019
Psst: Got Any Weed?

Wednesday, May 15, 2019
Open Letter: SEC Proposed Rule for BDCs

Friday, May 10, 2019
General Motors and Workhorse

Monday, May 6, 2019
How to Find Earnings Release Data

Tuesday, April 23, 2019
Following Restructuring Costs Over Time

Monday, April 22, 2019
Capex Spending: More Than You Might Think

Saturday, April 13, 2019
When AWS Takes Over the World

Thursday, April 11, 2019
Data Trends in Focus: Restructuring Costs

Sunday, April 7, 2019
How One Customer Crushed It With Calcbench

Thursday, April 4, 2019
TJX Shows Complexity of Leasing Costs Reporting

Tuesday, April 2, 2019
CEO Pay Ratios: Some 2018 Thoughts

Wednesday, March 27, 2019
Corporate Spending: Where It Goes, 2017 vs. 2018

Monday, March 25, 2019
Health Insurers: A Bit Winded?

Friday, March 22, 2019
Our New Master Class Video

Thursday, March 21, 2019
Tech Data’s Goodwill Adjustment

Tuesday, March 19, 2019
There’s Taxes, and There’s Taxes

Saturday, March 16, 2019
Adventures in Tax Cuts and Net Income

Archive  |  Search:
An Update on Leasing Costs
Wednesday, January 10, 2018

Corporate accountants quietly panicking about the new standard to account for operating leases can breathe a bit easier, although financial analysts curious to dig into those same numbers might need to work a bit harder next year.

The new standard, going into effect at the end of this year, requires companies to state the cost of operating leases on the balance sheet; until now, those costs have been tucked away in the footnotes. Since those lease costs can sometimes be quite large — multiples larger than other liabilities on a company’s balance sheet — the new standard could have a dramatic effect on some retailers, fast food joints, and other businesses. For an overview of impact, have a look at our report “Operating Leases: What Lies Beneath”

The Financial Accounting Standards Board, however, just issued an update saying that when companies do start reporting under the new standard, they will not need to revise prior years’ financial data to follow the new standard. Only leasing costs that exist as of Dec. 15, 2018 (the day the new standard goes into effect) will need to meet the new criteria.

That will be a relief to corporate finance departments, because most of them have barely begun to prepare for the new standard. According to one survey from PwC and CBRE late last year, up to 75 percent of companies are either still assessing the standard’s possible effect, or haven’t begun assessing at all. That’s not good.

On the other hand, financial analysts crave comparability of financial data — and that’s what we won’t have here, because 2018 numbers on the balance sheet will be reported according to a standard different from 2017 and 2016.

Calcbench subscribers will still be able to find all leasing data, of course. Even under the current standard, we track that hard-to-find leasing data in our Multi-Company and Interactive Disclosure pages. You will always be able to find those numbers within a few keystrokes.

FREE Calcbench Premium
Two Week Trial

Research Financial & Accounting Data Like Never Before. More features and try our Excel add-in. Sign up now to try the Premium Suite.