Accounting & Investing Info for San Antonio A & M
Monday Nov 10, 2014
A Democrat and Repuclican Congressman have an article in today's WSJ. It suggests that the
cost of calculating lease libaility
and the addition of that debt to balance sheets will cause loan rates to be accelerated
An independent study suggests this might cost 190,000 jobs and shrinkthe economy by $27.5 billion annually. Thus far the FASB has not responded to requests for field tests on what it would cost to do all the work the new rules require.
Hm. Fascinating. That much? How do they quantify these things? Well, I’m still not sure how we ended up treating debt of one type one way, and debt of another type a different way. I thought I understood the difference well….capital lease v. operating lease, are different, thus the different treatment made sense to me. However, it also makes sense that debt for ‘x’ year or years, is a debt, period.
LikeLike
Pauline raises a good question, HOw does one come up with such numbers? Apparently enough congressmen got letters that they decided a need to react
LikeLike
Professor Elam 
Leave a comment