Jones Lang LaSalle Launches Industry-First Website to Deliver Client Strategy and Updates on Upcoming FASB/IASB Lease Accounting Changes

CHICAGO, Jan. 18, 2011 /PRNewswire/ -- Jones Lang LaSalle today announced it has launched a website (www.LeaseAccountingChanges.com) to deliver leading-edge strategies, tools and information to help corporations worldwide navigate the upcoming changes in lease accounting treatment by the U.S. Financial Accounting Standards Board (FASB) and its counterpart, the International Accounting Standards Board (IASB).

Designed to improve transparency and eliminate off-balance sheet obligations, the Boards' new regulations will fundamentally alter the impact of leases on organizations' income statements and balance sheets. The new website will enable companies to better understand how these changes will affect them, as well as how to develop a plan for preparing for "Day 1" impact to integrating and aligning their strategic planning and portfolio strategy.

"The new lease accounting standards will dramatically impact every organization that holds a lease, and will have important ramifications across all corporate functions, from corporate real estate and finance to technology and human resources," said Vivian Mumaw, Jones Lang LaSalle's Global Leader, Lease Administration. "Organizations around the globe are rethinking their lease administration strategies in light of these changes, and this new website will provide actionable tools and information to help them formulate robust strategies to support successful compliance."

Some highlights of the website's features include:

• Lease Accounting Impact Calculator (http://www.us.am.joneslanglasalle.com/UnitedStates/en-us/LAC/Pages/LeaseImpactCalculator.aspx): a tool designed to help quickly approximate the impact of proposed lease accounting standards on a given lease and how it would be reported under the new rules. More extensive modelling available through Jones Lang LaSalle services can support decision-making in negotiation of lease terms and provisions.
• Lease Accounting Preparedness Checklist (http://www.us.am.joneslanglasalle.com/UnitedStates/EN-US/Pages/lease-accounting-checklist.aspx): a robust checklist to assess and facilitate a corporation's readiness to implement necessary changes to reach compliance. Specific areas include building a cross-functional team to conduct an initial assessment and manage the ongoing governance process; conducting initial due diligence; and creating an organizational structure to lead the change management process.
• What's New section (http://www.us.am.joneslanglasalle.com/UnitedStates/EN-US/Pages/lease-accounting-news.aspx): a comprehensive collection of articles, press releases, white papers and videos, including the latest news from IASB and FASB.

To complement the site's robust capabilities, Jones Lang LaSalle's leadership team will address questions posed via the website's dedicated e-mail inbox as well as provide additional information through regular posts and podcast interviews. Visitors can gain insights from the following Jones Lang LaSalle subject matter experts:

• Michael Billing, Senior Vice President, Global Lease Accounting Program Director
• Mindy Berman, Managing Director, Corporate Finance & Net Lease
• Lauralee Martin, Chief Operations and Financial Officer  
• Vivian Mumaw, Global Leader, Lease Administration

Though the new lease accounting rules are expected to go into effect no sooner than January 1, 2013, given the need to report two prior years' comparative information Jones Lang LaSalle is urging companies to begin to prepare immediately, particularly for businesses that draw heavily on lease arrangements. The increased level of detail that companies will need to address will lead to a significant shift in resourcing, data and information management and reporting, with a profound increased administrative burden on lease management.

"We cannot overestimate the sweeping change these rules will bring to nearly all global corporations, transforming lease accounting from its historical position as a back-office function into a fundamental element of strategic portfolio planning," said Michael Billing, Senior Vice President at Jones Lang LaSalle.  "As a leading-edge global real estate services firm, we continue to develop winning strategies for corporations to reduce costs and improve productivity within a rapidly changing business landscape, and helping our clients navigate through the new rules is a top priority."  

"By understanding and quantifying the impact of how negotiated lease terms will drive the balance sheet and income statement under the new rules, and, concurrently, re-evaluating desired lease structures and the principles for lease vs. own decision-making, a company can gain a long-term advantage within this new accounting landscape," added Mindy Berman, Managing Director at Jones Lang LaSalle.

The new rules will affect all companies reporting under either International Financial Reporting Standards (IFRS) or US GAAP including all US-based companies, most European Union-based companies and in Asia Pacific, any company based in Australia, Hong Kong, India, Japan or Korea where conformity to IFRS is or will be followed.

Jones Lang LaSalle has been the leading provider of client direction about the lease accounting changes. One area facing the greatest impact is lease administration, which Jones Lang LaSalle has been managing for clients for nearly two decades. Within the last five years, its lease administration business has continued to grow, providing a range of services from data management to full financial scope lease administration services for more than 70,000 corporate sites and $6.7 billion in managed spend. Currently, Jones Lang LaSalle serves more than 30 clients with portfolios in Latin America, a number that is forecasted to grow dramatically in the next 12 months.

To hear more information about Jones Lang LaSalle's viewpoints on the lease accounting changes, you can listen to the following free Webcast replays:

• On Jan. 5, 2011: CFO Lauralee Martin participated in a FASB/IASB roundtable: http://fasb.trz.cc/archive.php
• Jan. 13, 2011:  Managing Director Mindy Berman discussed the key changes proposed by the Boards and what companies need to be doing now to prepare in National Real Estate Investors' Lease Accounting Changes Webinar: https://event.on24.com/eventRegistration/EventLobbyServlet?target=registration.jsp&eventid=274125&sessionid=1&key=277E3EBCBFFA3A3A170ACFCF4568D61C&sourcepage=register

About Jones Lang LaSalle

Jones Lang LaSalle (NYSE: JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2009 global revenue of $2.5 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.6 billion square feet worldwide. LaSalle Investment Management, the company's investment management business, is one of the world's largest and most diverse in real estate with approximately $40 billion of assets under management. For further information, please visit our website, www.joneslanglasalle.com.

SOURCE Jones Lang LaSalle