Companies now have a bit more breathing room and time to prepare for the FASB 13 changes after an announcement in April 2011 that the Board is delaying the June target date for finalizing and releasing the new standards. FASB and IASB have determined they need more time to review feedback they received from stakeholders to ensure the final standards are of the highest quality, according to their podcast announcement.
This delay is good news for companies still working to determine the best ways to prepare for the new lease reporting standards. The fear of possibly adding hundreds of billions of dollars in assets to the balance sheet is top of mind for most companies. Office vacancy rates and under-utilization directly contribute to impaired assets. The closer you get to a perfect efficiency measurement of revenue-per-square-foot, the less impact those impaired assets will have when the accounting rules change.