New rules for leases?: a radical change to accounting standards bodes ill for both landlord and tenant

Article Abstract:

New proposals in a discussion paper Accounting for leases: a new approach, could drastically affect property company landlords, and commercial and industrial company tenants. A distinction is usually made between finance leases which count towards the balance sheet gearing of a company, and operating leases, where no asset or liability usually appears in the balance sheet. Property leases are mostly treated as operating leases and the proposals aim to treat most operating leases in the same ways as finance leases.

Debt Management-Leasing, Accounting and auditing, Leases, Lease and rental services, Debt management

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Double-edged property sword

Article Abstract:

There have been mixed reactions to the proposals put forward by the UK's Accounting Standards Board regarding approaches to depreciation for properties. The organisation has suggested that companies depreciate properties which they occupy for their own use, but not those held as investments. However, there has been some opposition to the depreciation of occupied properties, as this will have a negative impact on company profit levels.

Standards, Accounting, Depreciation

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Yield is the yardstick in a bumpy market: in an unstable world, property based on yield provides a safe haven

Article Abstract:

The commercial property sector in the UK has shown a high degree of rationalism, despite concerns about recession. Yields have risen gradually as anticipations of rental growth have been scaled down. Equities clearly offer potentially higher yields than property, but property is less risky.

Management, Investments, Column, Real estate industry

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