Lease Accounting Faces Analyst Ambivalence

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May 20, 2018

On May 20, 2018, the Financial Executives International (FEI) released an article on how despite the concern from financial preparers regarding the implementation of the new lease accounting rules, there is palpable ambivalence from at least one of the major consumers of the new disclosures: Wall Street research analysts.

Few, if any, analysts have questioned financial executives about their lease plans during the Q&A sessions of recent earning calls, where a majority of the accounting discussions revolved around revenue recognition issues.

And even once implementation begins in earnest as the 2019 deadline grows nearer, equity analysts admit they see fewer ramifications on their buy/sell decisions and models.

Review the full article on FEI's website and an article on how companies are still unprepared for leasing standard on Accounting Today's website.

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