The changes apparently won't deter CFOs from their need for leasing agreements. In a survey of 846 CFOs and controllers in late September and early October, 59% told Grant Thornton they would continue to use leases or lease financing the same way they do now.
Still, says Bosco, with specifics in the new rule still being worked on, it may be too early to tell how it could affect lessees' behavior. For instance, small businesses that use leasing agreements for their short-term capital needs will still need them. And the new rule may not allow much wiggle room. "All leases will be capitalized, so the ability to do any financial engineering, which [the boards] are very afraid of, will be severely diminished," he says. "All leases will be on the balance sheet."
Reader CommentsDisplaying 1 of 1
Martin Cole
Nov 5, 2009 8:37 AM ET
Property Leases
Does any think that this could apply to property leases effectively a rental agreement
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