Build-to-Suit Construction Adds Complexity to Lease Accounting


Companies that undertake construction projects in conjunction with leases should be careful of the accounting effects, PricewaterhouseCoopers’ Chad Soares says. Certain projects must be included as an asset on a lease-holder’s balance sheet, depending on how involved it is with the project. "If a lease involves an asset that will be constructed, special rules exist," Soares says.

During a recent webcast covering a variety of accounting issues, PwC Partner Chad Soares reminded companies that there are unpleasant balance sheet implications to beware when entering into build-to-suit lease agreements.

Further details are available on this article posted on Compliance Week.


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