‘Profound impact’ from accounting change warning

OCCUPIERS and investors need to be ready for new accounting standard that will force firms to put lease obligations on their balance sheet, says a new report.

Research by BNP Paribas Real Estate UK warns that proposals from the International Accounting Standards Board will have a "profound effect" on the commercial property sector.

It suggests the changes will lead to occupiers seeking shorter leases, increasing their ownership of building and asking for predictable RPI-linked leases.

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