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NEW LEASE ACCOUNTING IS A NIGHTMARE

NEW LEASE ACCOUNTING IS A NIGHTMARE

Presented by: Forrest Blake | Senior Vice President | SVN Commercial | 310-850-2381 | Lic # 01054174

WHAT IS HAPPENING?

Financial Accounting Standard Board (FASB) has created new guidelines on how a company will report their lease obligations. Leases beyond twelve months will be required to be moved onto the balance sheet. Firms must record all future lease payments for the term of the lease as a liability at the start of the lease. Additionally, tenants will be required to include extension options.

FASB TIME LINE

FASB 13 a

POSSIBLE TROUBLE FOR TENANTS

FASB13c

POSSIBLE SOLUTIONS

FASB 13b

Over the next few months, I will continue to build on the issues and solutions to those issues. If your company has a more immediate need and have a commercial lease that expires anytime in the next 4 years, it is time to have a discussion. Feel free to contact me.

Forrest Blake | Senior Vice President

SVN | Commercial – DTLA

800 South Figueroa Street, Suite 925, Los Angeles, CA 90017

Phone 213.618.4196 | Mobile 310.850.2381

forrest.blake@svn.com | www.svn.com

CalDRE# 01054174

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