Los Angeles – October 1, 2009 – A new special report by CB Richard Ellis (CBRE), FAS Talking--Unpacking Real Estate's Impact on Financial Statements, analyzes the significant impact that changes to U.S. and international standards for accounting for real estate leases will have on corporate balance sheets and financial results.
The white paper also provides perspective on the impact of mark-to-market valuations for real estate assets in a distressed environment as well as the proposed elimination of off-balance sheet treatment of operating leases. These changes may significantly impact the reporting of assets on the balance sheet and the recognition of earnings on the income statement. FAS Talking--Unpacking Real Estate's Impact on Financial Statements was authored by Todd P. Anderson, Senior Managing Director, Global Corporate Services, CB Richard Ellis and Michael M. Omiya, Chief Financial Officer, Boeing Realty Corporation, a wholly-owned subsidiary of the Boeing Company.
"While the regulatory intent, standards enforcement, and media focus are currently on financial instruments, real estate reporting is equally impacted. For many companies, the adjustments made to the financial treatment of these assets may have one of the strongest impacts to a corporation’s financial outlook. The reality is, most companies are only beginning to understand these changes," said Mr. Anderson.
The potential re-emergence of capitalizing operating leases (bringing them onto the balance sheet) and the continued evolution of mark-to-market valuation protocols may have a more than $1 trillion impact on U.S. corporations. In addition to highlighting the pending changes from the U.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), FAS Talking--Unpacking Real Estate's Impact on Financial Statements discusses preemptive actions corporate real estate managers can take in the areas of portfolio planning and compliance.
NOTE TO EDITORS: FAS Talking--Unpacking Real Estate's Impact on Financial Statements can be viewed HERE. To speak with a CBRE expert, please contact Robert McGrath (212.984.8267 or Robert.McGrath@cbre.com).
About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2008 revenue). The Company has approximately 30,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. CB Richard Ellis has been named a BusinessWeek 50 "best in class" company three years in a row and a Fortune 100 fastest growing company two years in a row. Please visit our Web site at www.cbre.com.