Lease accounting standards are set to to change in 2019, when the new rules will become mandatory. Is your business ready to deal with these new FASB policies? See our timeline of the coming changes.

1. FINANCIAL STATEMENT
FOOTNOTE:$5.0M LEASEOBLIGATION
NORMAL NEW POLICY
L O N G
T E R M
D E B T
$1.0 M
$1.0 M+ $5.0 M
lease obligation
= $6.0 M
NO
grand-
fathering
real
estate
airline
equipment
retailers
restaurant
equipment
PUBLIC PRIVATE
NONPROFIT
LEASE ACCOUNTING CHANGES ARE COMING SOON.
EXAMPLE: Company BA1 signed a 10 year lease at $50 p.s.f on 10,000 sf
Total lease obligation - $5.0 M for 10 years
Is your business ready?
New FASB Lease Accounting Standards
What is the impact?
How JLL can mitigate
risk for your business
Balance Sheet without FASB policies
Establish an action plan
Review current lease portfolio and
calculate/anticipate the impact of
changes
Balance Sheet with FASB policies
• Rent payment
• Contingent rent
• Renewal option
• Term penalties
ALL
enterprises
must
account for
ALL leases
and ALL
existing leases
by 2019
NOV 2015
FASB approves new rules requiring companies to account for
most leases directly on their balance sheet
2016
Companies need to start accounting for new
lease framework
2018
New standards implemented at
company’s election
2019
New standards become
effective and mandatory
Stay Informed: www.LeaseAccountingChanges.com
jll.com