Bloomberg Tax
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Tax
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

What Investors Need to Know About U.S. Lease Accounting Changes

May 17, 2019, 8:08 PM

Investors might want to give those new lease accounting disclosures and balance sheet figures a second look as the dust settles on the first quarter earnings season.

New rules for how companies account for leased assets and obligations will permanently alter balance sheets—reflecting nearly $4 trillion worth of leases for planes, rail cars, storefronts, and restaurants worldwide. But the new liabilities will also distort ratios like debt-to-equity and return on assets that investors use to compare company performance over time and against competitors.

“There’s a ton of analytical consideration for investors in looking at the balance sheet, looking at the ...