By now you may have heard the Financial Accounting Standards Board (FASB) has issued new office leasing standards that will take effect in 2019. The standard states that businesses will have to report their leases as both assets and liabilities on their balance sheets. Office space will then be recognized as a debt instead of an expense. This change will affect businesses in different ways, and now is the time to strategically plan for the impact.
The new standard will only apply to office lease terms that are 12 months or longer, which makes shared office space with flexible lease terms an attractive option. Preferred Office Network has the most flexible lease terms in the industry with our No-Term agreement. With over 485 business centers in North America that offer fully furnished executive suites, private offices, meeting space, coworking space and more, there is no shortage of opportunity for your business to leverage a shorter lease term.
A helpful guide on how to prepare for the change can be found on FASB’s website, and we invite you to strategize directly with one of our Corporate Account Managers by calling 855-4-NOTERM or emailing firstname.lastname@example.org.