7.05 FASB 13 Ruling on Operating vs. Capital Leases: How the Changes in Lease Accounting will Affect Your Business

Friday, March 25, 2011
8:30 AM-9:30 AM
The Westin -- Boston Waterfront
Track: Corporate Real Estate Council Industry Specific
Format: General Presentation
Knowledge Level: Intermediate
Session Description: This session will help you understand the things you don’t know about FASB 13 and how to mitigate the loss to your company’s balance sheet. On Aug. 17, 2010 the Financial Accounting Standards Board released their “exposure draft” requiring companies to record nearly all leases on their balance sheets as a “right to use” asset, and a corresponding “future lease payment - liability.” What does this mean to your business in layman terms? This proposal in essence does away with operating leases; all leases (unless immaterial) would be capitalized using the present value of the minimum lease payments. Therefore, businesses who in the past had off-balance sheet lease obligations, must now record these obligations on their balance sheet.
Learning Objectives:
  • Understand what is changing in the new ruling and why.
  • Learn how the lease decisions you make today will affect your future financial position.
  • Learn strategies that will better position your company financially.
  • Understand what you donít know and why you should be concerned.
  •     Presentation


    Mindy Berman
    Jones Lang LaSalle
    Managing Director, Capital Markets

    Ms. Berman serves as a Managing Director in the Capital Markets Group for the Americas Region of Jones Lang LaSalle. She serves the firmís corporate and investor clients by developing and executing financial strategies for their occupancy, investment and capital requirements related to real estate, assisting them in the analysis and evaluation of deal structures to help meet their economic and financial reporting objectives. Ms. Berman has 30 years of corporate finance experience structuring and arranging financing for the fixed assets of major corporations to meet their economic, financial, operational, tax and financial reporting objectives. She has relationships with a variety of capital sources including institutional investors, commercial banks, finance companies and private equity investors for taxable and tax-exempt financing. Prior to joining Jones Lang LaSalle, Ms. Berman was in leadership positions at 42 North Structured Finance, KeyCorp and The Bank of Tokyo-Mitsubishi where she led business development and capital markets teams for their structured finance groups. Ms. Berman is nationally recognized as an expert on accounting for leases. She is well known for her skills in product development and integrating capital markets products into financing solutions. Ms. Berman earned a M.B.A. from the Boston University Graduate School of Management and a B.A. degree from Brandeis University. She has been a Director of the Equipment Leasing and Finance Association and a member of the Financial Accounting Committee. She is a frequent contributor to industry publications and speaker on capital markets and accounting topics.