Lease accounting proposals – Thoughts for retailers on building counter-arguments

Since we published Lease accounting for retailers – The biggest-ever accounting change? our retail clients have shared with us their points of view on the changes proposed by the Boards. This paper details some of their arguments and points of view. Retailers will want to give thought to these issues and questions in light of the coming exposure draft. Some of the issues touched on include:

  • Unit of account
  • Liability for optional renewals
  • The anti-abuse challenge
  • Recognition triggers for contingent rents
  • Views of the investment community