Reporting Leases, China Bonds, Consumer Bureau: Compliance
As reported by Business Week, accounting changes that would require companies to report more of their leases as assets and liabilities may encourage businesses to structure shorter-term rental agreements that could hamper the ability of lessors to predict cash flows, according to Fitch Ratings.
The International Accounting Standards Board and the Financial Accounting Standards Board last week proposed rule changes in an effort to improve transparency for a company’s leverage, assets and risks to which it is exposed from entering into leasing transactions. Most leases aren’t currently reported on a lessee’s balance sheet, a system that has been criticized for not fully reflecting a company’s finances.
Lease-Accounting Rules: Tinker, Don’t Trash
According to CFO Magazine, the current proposal to overhaul lease-accounting rules is off base, because for most lease transactions, the existing rules work well.
The Financial Accounting Standards Board and International Accounting Standards Board should not throw away decades of experience and force lessors to spend millions of dollars updating their accounting systems to address a limited set of weaknesses in the rules. Users and preparers of financial statements would be better served if the current rules were merely tightened to address the areas that make them vulnerable to manipulation.
The benefits of brown-bagging it
As reported by News Tribune, a recent study by Accounting Principals, a finance and accounting staffing firm, found that 66 percent of employees buy their lunch instead of packing it, costing them an average of $37 per week – nearly $2,000 a year.
Most of us don’t realize how much we’re spending at work. When the surveytakers asked respondents which work-related expense they would most like to be reimbursed for, most people said commuting costs. Only 11 percent chose lunchtime expenses.