Lease Accounting Rules Cost More Than Expected, US Review Finds

The accounting overhaul that pulled leased airplanes and warehouses onto corporate balance sheets has led to higher ongoing expenses for companies than the US standard-setter initially expected, according to a new report.

Overall, the leases guidance achieves its goal of providing users of financial statements, like investors, more useful details about leasing activities, the Financial Accounting Standards Board found in a report issued Thursday evaluating the rollout of the 2016 standard.

FASB’s guidance requires companies to recognize on the balance sheet assets and liabilities for all leases they hold, including so-called “operating” leases—a massive shift for many businesses.

Delta Air ...