- What are these proposed changes? Why do we, as commercial real estate professionals care? Who are these changes going to affect? How can those affected prepare for the changes? Who should be paying attention: brokers, property managers, asset managers, tenants and investors—or is this something for just CFO’s and accounting types?
- If accounting changes are not going to take effect until 2017, why are we talking about them now? Hint: if the leases you are signing today are longer than 4 years, you should be thinking about this and listening to this show.
- Do these new standards apply to leases in countries other than the United States?
Michael has worked in the real estate accounting and compliance field since 1994. During that tenure, he has been a hands-on controller and operating officer for several real estate companies, ranging from a start-up developer to a mature, multinational developer, owner and property manager. The accounting experience included general ledger reconciliations, year-end operating expense reconciliation billings as detailed in each lease, and issuing financial statements to auditors and lenders per the terms of the loan covenants. In addition, these roles provided the opportunity to review, write and negotiate a wide array of contracts, such as loan documents, purchase and sale agreements, development agreements with the municipalities’ supplier contracts and lease contracts. His “landlord” perspective has strengthened BCC’s internal review process on complex issues prior to presentation to its clients and these efforts have resulted in millions of dollars in decreased occupancy costs. Mr. VanderGoot is leading BCC’s initiative in the FASB proposed new lease accounting standards by using his accounting knowledge and expertise to enhance BCCs additional consulting services.
Peter Morris SCLS, SCSM, SCMD
CEO, Greenstead Group LLC