Peter Morrison, Ryan MacLean, Kevin Rowley Published in Financial Executives International News

ASC 842 Lease Accounting: Simplifying IBR

Peter Morrison, Managing Director and Head of VRC’s Real Estate Valuation practice group, along with Ryan MacLean, Senior Vice President, and Kevin Rowley, Vice President, is featured in an article in Financial Executives International (FEI) Daily News daily titled “ASC 842 Lease Accounting: Simplifying IBR”.

The article discusses the focus placed on ASC 842, the new lease accounting standard from FASB, which takes effect this year for most companies. Moreover, the article highlights a related area of growing concern for CFOs and the controller’s group with the applicable incremental borrowing rate—the discount rate most companies need to use when discounting cash flows and quantifying lease liabilities on the balance sheet.

“For lessees that have outstanding bonds or bank loans, they have a good place to start in calculating the IBR. However, companies that don’t have outstanding debt will need to do some homework,” said Morrison, “or, work with outside experts, to determine the IBR.”

Read the complete article on FEI’s website.

 

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