Thursday, January 12, 2012
Accounting & Information Systems
On December 2, accounting professor, Terry Warfield, was published in a Thompson-Reuters article about new standards for lease accounting published by the Financial Accounting Standards Board and the International Accounting Standards Board.
New procedures may require companies to state their lease expenses on their balance sheets which will help to give investors a better insight into a company’s debts.
Warfield explains that though companies may be slightly perturbed by the possible change, this will help to better reflect the economic transaction.
“Yes, it’s different from what we’re doing now, but that doesn’t mean what we’re doing now is the right thing,” Warfield said.
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