Visual Lease’s management team, along with Grant Thornton recently hosted a webinar to address the impact on corporate real estate under the FASB/IASB’s proposed lease accounting changes.
The presenters include some of the country’s top real estate lease experts, Marc Betesh and Lou Ferro, as well as Gary Illiano, National Partner at the CPA firm Grant Thornton.
If you were not one of the hundreds who attended, and would like to watch the replay and download the slides, it is now available. Please click here or on the image below.
Marc Betesh and Christopher Werely will be interviewed by crePodcast’s Duke Long and Jason Sandquist on February 23rd. CrePodcast (Commercial Real Estate Podcast) covers news from every aspect of the real estate industry and features real conversation from industry leaders around the world. Past interviews include Stephen Spooner, Executive Chairman of OSCRE, Mike Manning, VP of Marketing at LoopNet, and Garret Krueger from ROFO. An archive of past podcasts is located here.
The February 23rd podcast will focus on the upcoming lease accounting changes and what can be done now to prepare. This interview continues a string of interest in KBA’s expertise on this topic from trade associations, service providers, and major corporations.
Duke Long is the owner of The Duke Long Agency in Indianapolis, IN and is the author of the popular one of the most popular real estate blogs. Jason Sanquist is a Real Estate Client Advisor at Adam Commercial Real Estate in Minneapolis, MN.
Marc Betesh, President and founder of Visual Lease and KBA Lease Services, is scheduled to speak about the FASB’s upcoming lease accounting changes at the New Jersey chapter of SIOR on February 2nd, 2011. Mr. Betesh’s presentation “How Proposed Lease Accounting Changes May Affect the Brokerage Business,” will help commercial real estate brokers address tremendous concern across the real estate industry. The event, hosted at the Wine Library in Springfield, NJ, will be geared towards educating and informing SIOR members of the impending changes.
Mr.Betesh and Lou Ferro of Visual Lease and KBA Lease Services, in conjunction with Gary Illiano of Grant Thornton, will also be hosting a free webinar on Feb 2nd at 12pm EST outlining the impact on corporate real estate due to the upcoming changes.
To register please email firstname.lastname@example.org or visit www.kbalease.com/fasbwebinar.
On February 2nd at 12pm EST, Visual Lease and KBA Lease Services will host a free webinar outlining the impact on corporate real estate due to the proposed FAS 13 lease accounting changes. Presenters include Marc Betesh, CEO of Visual Lease, Gary Illiano of Grant Thornton and Lou Ferro of KBA Lease Services.
“I attended Visual Lease’s FASB round table discussion in New York City and found it highly informative, says Meyer Last, Esq., Partner at Fried Frank. “The emphasis on practical application will be greatly useful to anyone who must contend with the new rules, whether directly or as a consultant.”
- Updates from FASB’s Latest Roundtable Meetings
- What You Need to Know about the Proposed Changes
- Modified Gross Leases – A Thing of The Past?
- How Long is a Lease Term (Once You Count Options)?
- How Existing Leases Will Be Treated
- What You Can Do Now To Save Both Time and Money
Today’s agenda is made up of the following components:
- Definition of a lease
- Lessor accounting model
- Lease term
- Variable lease payments
We are in the middle of Lessor Accounting. Here is a recap of Definition of a Lease:
- “The primary objective of the entire project is to accommodate for material assets and liabilities that are not on the balance sheet” – Leslie Seidman, FASB Acting Chairperson
- The boards are not sure how to handle service components that are bundled with asset leases. The airline industry gave the example of “dry” vs “wet” leases where a dry lease is only for the aircraft, and the wet lease includes crew and services. This is similar to a net vs gross lease in real estate.
- FASB and investors are concerned with “Financial Engineering” if service components are not capitalized. They fear that leases will start to look like service contracts.
- There is a discussion about materiality of leases. I.e. a full service real estate lease vs a copier lease. Many are concerned that it will be too difficult to distinguish.
- Toys R Us is concerned about the amount of work that needs to go into accounting for “non-core” leases like fork lifts, computers, copy machines, etc. Investors claim that the company cannot run the business without them, and that they are contractual obligations, therefore they should be capitalized.
Visual Lease’s President, Marc Betesh and COO, Chris Werely will be attending a joint FASB/IASB public round table today in Norwalk, CT to discuss the changes to FAS 13 lease accounting. Marc Betesh has been invited to participate is the discussion, joining other real estate and accounting executives from Ernst & Young, KMPG, Toys R Us, AIG, SEC, Xerox and others. The participants will have the ability to voice their opinions and concerns directly to the boards.
We will be blogging live and listening carefully to determine the boards stance on some of the controversial issues impacting commercial real estate, like determining the longest possible term.
Follow us live on Twitter at @VisualLease and @LeaseAudit
Click here to learn how Visual Lease’s software and consulting services can help you prepare today for changes to FAS 13.