Major shift in lease accounting could cause major headaches

Description

Abstract: Almost every manufacturer leases equipment or real estate. For decades, companies weren’t required to report many lease-related assets and liabilities on their balance sheet. That’s all about to change under a controversial new lease accounting standard that’s scheduled to be published in early 2016. This article provides an overview of the current and proposed lease standards. A sidebar explains why leases remain a viable option for some manufacturers.