NEW YORK, Oct. 4, 2018 /PRNewswire/ -- Calcbench, the leading interactive, financial research platform for data-intensive analysts, today released its Operating Lease Report, "What Lies Beneath" — an in-depth look at how a looming new accounting standard for leasing costs will affect corporate balance sheets.
The new standard (ASU-2016-02, Leases) will require companies to report leasing costs on the balance sheet, rather than the current practice of disclosing those costs in the footnotes. Calcbench is tracking more than $1 trillion in leasing debt across 3,000 firms, all of which must be reported on the liabilities side of the balance sheet starting with fiscal years beginning on or after Dec. 15, 2018. Companies will also report a corresponding "right of use" asset on the asset side.
"This new standard will provide a level of visibility into financial statements that didn't previously exist," says Pranav Ghai, co-founder and CEO. "Financial metrics like return on assets could change. Debt covenants might need to be renegotiated. The value of leased assets might be impaired, which hits net income. This standard is a big change with potentially significant implications. Calcbench gives users the tools to access leasing data easily and to understand what those implications might be."
In addition to total lease liabilities, Calcbench's report includes details on which firms have the greatest total operating lease liability and the largest implied liability increases; as well as total lease liability by sector.
For analysts who want to go beyond the report, Calcbench offers:
- Access to every lease footnote filed with the SEC;
- The ability to review term structures of leasing arrangements;
- The ability to track changes in leasing obligations over time, starting from 2009.
With Calcbench, users can export leasing data directly into documents or, with one mouse click, an Excel-based financial model. Calcbench data exported into Excel is traceable back to the source.
Calcbench has been writing about the new operating lease accounting standards for months:
- Leasing Costs and the Income Statement
- Lease Accounting and Return on Assets
- Latest Look at Leasing Liabilities
Ghai cautions that while operating lease information is more visible, it is still important to perform deeper analysis. For example, Ghai recommends looking at potential lease impairments, which could be used to manipulate net income and earnings per share.
For more information on the new accounting standard, the Operating Lease Report, visit www.calcbench.com.
Calcbench is changing the way data-intensive financial analysts access and analyze data. Founded in 2011 by former analysts, the company uses the latest technology to offer instant access to 300+ million data points from over 12,000 corporate entities. Calcbench brings usability to the hard to find information embedded in the footnotes and maximizes productivity. Calcbench is the market leading interactive, financial data platform powered by XBRL. Information in the company's database is unfiltered and traceable back to its original source. Visit www.calcbench.com to get behind the data.
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