The future of leasing

November 2009
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Point of view: The future of leasing

At a glance

Standard setters plan to require all leases to be reported on balance sheet. The impact on lessee financial reporting, equipment financing, IT, systems, and controls could be substantial.

Highlights:

  • Balance sheets would be expanded by the addition of leased assets and related obligations
  • Lease obligations would be greater than we see reported today under current lease accounting treatment
  • Lease obligations would require ongoing re-measurement
  • Existing operating leases would not be grandfathered
  • Lessor accounting still under discussion