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2016 FASB Lease Accounting Standard

Walt Batansky, the CFO of Corporate Real Estate Services firm Avocat Group, discusses the final 2016 FASB ASU-02 (Topic 842) which will require corporations to treat commercial leases in excess of one year in term as capital leases, more in line with IASB standards. This will require acknowledgement of the lease as an asset with a corresponding liability on each firm’s balance sheet, a significant change from past practices.  He outlines the Top 10 action items that corporations should take to prepare themselves for this upcoming change.