|
|
|
|
|
|
by ChrisBland
2494 days ago
|
|
|
An interesting thing happened a bit ago related to public companies and how they must account for leases in the accounting standards update 2016-02, Leases (Topic 842). For lessees, any leases that are over 12 months in duration will need to be presented on the company’s balance sheet as a right-to-use asset and corresponding liability for the obligation to pay rent. So if you are a public company; you can rent space from WeCompany at an 11mo period and you can magically reduce your liabilities vs signing your own office space. While this may seem like a small change, this change could allow execs to improve their financials with accounting gimmicks. |
|
|