As many large international companies are learning, the conversion to ASC 842 and IFRS 16 was not a process that ended with the transition date or first annual reporting cycle. In addition to dealing with both US GAAP and IFRS reporting, the underlying challenges of maintaining accurate data, reconciling financials, dealing with different languages and … Continued
In the years leading up to the 2019 Transition Date for ASC 842 and IFRS 16, we authored a couple of articles on FASB’s Gift and Moneyballing CRE where we projected that the significant investment in new systems, data assembly, financial integration and new processes and controls would pay substantial dividends in the overall asset … Continued
The recent economic challenges related to the COVID-19 pandemic have caused businesses to look for ways to raise cash to weather the financial storm. A number of companies are looking into sale and lease-back transactions (SLB) of their own real estate as a way to raise capital.
After the initial article on An Idea to Avoid Financial Destruction, there have been a number of companies and state governments who have either unilaterally decided to stop paying rent or instituted a “moratorium” on enforcement actions like eviction for 90 days.
Of all of the market cycles that we have been through over the last 40 years, the looming fallout from the current Covid-19 pandemic may create financial hardship that could reverberate for a generation. The US economy generates roughly $50 billion of commerce every day ($19T GDP / 365). The almost immediate shutdown of all … Continued
Back in 2016, this was Lou Battagliese’s response to a recommendation made to Macy’s. Four years and post FASB lease accounting compliance later, other big retail companies are looking at sale/leasebacks. The realization that corporate occupiers of commercial real estate should look at the value that their occupancy creates, and manage real estate more as … Continued
As I approach a milestone birthday I am amused by how the arc of my career has come full circle. As a brand new IBM sales trainee in 1980 my first assignment was to create a rent vs own analysis to convince companies that were renting rooms full of the IBM 029 card punch machines … Continued
The irony has not escaped us that on April Fool’s Day 2019, all of the public companies around the world, reporting on a calendar year basis, will be preparing for their first quarterly financial reports under the new Lease Accounting standards (ASC 842 and IFRS 16).
With the initial transition date for the new Lease Accounting Standards less than two years away, a large number of companies are already in their comparative “look back” period. For US based, calendar year, public companies, the period of dual tracking between the current and future standards commenced January 1, 2017. For many of the … Continued
In Michael Lewis’ book “Moneyball”, which was made into a motion picture, he recounts the transformation of the Oakland A’s, a low budget major league baseball team using advanced analytics, rather than traditional “gut instincts” of baseball men, in evaluating players and building rosters. Theo Epstein became one of the most successful practitioners of this … Continued