Feb 22, 2019

New lease accounting standards for commercial landlords

Following a series of corporate accounting scandals in the early 2000’s, Congress passed the Sarbanes-Oxley Act of 2002 (SOX). Section 401(c) of SOX required the Securities and Exchange Commission to study and report on the extent of off-balance transactions. This prompted the Financial Accounting Standards Board (FASB) to undertake a project on lease accounting.