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Hidden in Plain Sight

Leasing may soon have to be justified on economic terms alone.

Tim Reason, CFO Magazine
August 1, 2005

Re: Impairment

This and the added calculations will make things more "interesting" for us Finance staff in the RE industry.

Posted by Ngoni Mareya | July 25, 2006 09:16 pm

Impairment?

Once you've booked assets & liabilities for each of your office/retail space leases (and restated your prior periods), I suppose you would also have to hire a real estate appraiser every year for each lease, in order to determine whether you need to book an impairment charge against any of your office/retail space lease assets, due to declines (if applicable) in the real estate market? Sounds like a pretty onerous change, which would affect a huge number of companies.

Posted by Paul Moore | July 14, 2006 10:15 am

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