CFOs Brace For Loan Disruption Amid Accounting Changes

More from: | PYMNTS |
0

Corporates are gearing up to manage a whole slew of accounting standards changes in the coming years, but one of the more immediate effects involves how leases are recorded on financial statements.

Reports in the Wall Street Journal said the changes could “upend” loan agreements, and have chief financial officers scrambling to adjust their strategies.

As the publication reported Thursday (October 11), public companies will be required to report their operating leases as liabilities, which will significantly change their corporate debt-to-earnings ratios. It’s a key metric for lenders when establishing loan covenants to mitigate default risk, and could limit borrowing powers even for a company whose financials have not changed, .

The changes take effect next year.

(...)

Read full article » https://www.pymnts.com/news/b2b-payments/2018/corporate-lease-standard-loan-financial-reports/


About | PYMNTS |

PYMNTS.com is reinventing the way in which companies share relevant information about the initiatives that shape the future of payments and commerce and make news. This powerful B2B platform is the #1 site for the payments industry by traffic and the premier source of information about “What’s Next” in payments and commerce. C-suite executives, company founders, and investors turn to it daily for these insights, making the PYMNTS.com audience the most valuable in the industry. It provides an interactive platform for companies to demonstrate thought leadership, popularize products and, most importantly, capture the mindshare of global decision-makers. It’s where the best minds and best content meet on the web. Innovations in payments and commerce have become highly intertwined. PYMNTS covers every aspect from retail reinvention to the Internet of Things.

»Twitter: @pymnts »Facebook: @pymnts