Real Estate Management in the True Cloud

FASB Guidelines Change Update!

Lucernex Real Estate Solutions Strategist, Mike Hammerslag, MS(RE), MBA, CPM®, provides an update on the FASB guidelines changes.

Can you say ONE Model with THREE Approaches!

There has been some significant progress this summer and I am happy to report that final adopted regulations in less than ten (10) months would not be a surprise!

Letter to FASB on the Proposed Lease Accounting changes

Question 8: Lease term
I am opposed to the inclusion of Renewal Options in the lease term. My reasons are as follows:

(1) In a 20-year retail lease with two “more likely than not to be exercised” 20-year renewal options, the total charge to the P&L for Right-to-Use and Interest Expense would include a discounted value of the year 60 rent. This year 60 timeline does not seem reasonable to me.