SIGNIFICANT CHANGE?

FASB's proposed lease accounting changes may be less than meets the eye, Transwestern CFO Steve Harding told Bisnow Houston?s Catie Brubaker last week. Tenant rent expenses will go away,replaced by depreciation and interest. This creates a liability and an asset on the books. Bankers may see it as more debt, but expenses haven?t actually changed, so a simple explanation to bankers and analysts may suffice. The proposed changes aim to have all leases viewed as capital leases for all companies. While a PricewaterhouseCoopers study says $1 trillion of debt will appear, Steve isn't sure the impact will be significant

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