By John Ramirez, published in the February 2012 issue of the
Journal of Multistate
Taxation and Incentives.
This article appears in, and is reproduced with the permission of, the
Journal of
Multistate Taxation and
Incentives, Vol. 21, No. 10, February 2012. Copyright (c) 2012 Thomson Reuters/WG&L.
All rights reserved.
Under current U.S. generally accepted accounting principles, the assets and the
liabilities of operating leases are
not recorded on the balance sheet. The International Accounting Standards Board (IASB)
and the Financial Accounting
Standards Board (FASB) are proposing significant changes to the current lease accounting
standards. As a result,
virtually all leases, including operating leases, will be reported on a lessee
taxpayer’s balance sheet. These proposed
changes may have a significant impact on the property tax valuations of many industrial
and commercial taxpayers,
particularly capital-intensive taxpayers that lease much of their real and personal
property.
See More