FASB Plugging away at New Lease-Accounting Rules
Alacrity is not a characteristic of the Financial Accounting Standards Board. An exposure draft of FASB's proposed lease accounting standard is due out this month. But the glaring issues with off-balance-sheet accounting, including the operating-lease shell game, were well understood shortly after Enron Corp. declared bankruptcy on Dec. 2, 2001. Enron is the definitive case study for off-balance-sheet items abuse. The old lease accounting rule, FAS 13, can be gamed. Under this, most commercial real estate leases can be structured so they qualify for off-balance-sheet treatment. FASB's detailed status summary on the lease accounting reform project indicates it is being done jointly with the International Accounting Standards Board (IASB) so that the result can be globally applicable. The summary covers such topics as "options to extend or terminate," "contingent lease payments," where leases should be reported on financial statements, subleases, and more. While the reform process has been accepted in the U.S., Europe's business community has indicated concern, if not alarm. A statement by an association of European lessors says, "This is an issue that will affect all firms who choose to lease or rent their property or equipment. Standard setters [FASB and IASB] are considering an approach that would create immense complexity for the preparers of accounts and will dramatically impact their financial statements."

Participate in IAMC's Online Business Networking
Stay "linked in" year-round with fellow IAMC members through IAMC's LinkedIn online business networking group, which is open exclusively to members. Once you join, you can post discussion items for group input and share your knowledge by answering others' questions.

Source: blog.linkedin.com

Check out Linkedin's job listings, including "head of facility management, construction manager," and more.

To jump to the LinkedIn logon screen, click here.  Once logged on, go the top of the left-hand column and click on "groups." For more information on LinkedIn or the IAMC Group on LinkedIn, click here.

Find a Real Estate Job; Post an Opening; Post a Resume
Go to the IAMC Career Center to read about dozens of corporate real estate, economic development and real estate service provider jobs. Construction or Manufacturing Project Manager for M&I Electric. The position description says the incumbent must have "project coordination skills to manage labor force to meet key milestones and labor hour budget requirements, the ability to work in a fluid environment and maintain a positive focus, and strong written and oral communication skills."

IAMC member company Whirlpool has notified IAMC that it seeks to fill the position "Senior Real Estate Manager - Construction." To review the position description, click here. Please respond to Heidi Maskas at heidi_maskas@whirlpool.com and apply to Whirlpool's careers site at www.whirlpoolcareers.com.

Houston, Dallas Attracted Most Facility Projects Last Year

• In its annual ranking of large U.S. cities that recruit the most new corporate facilities in a year's time, Site Selection magazine gave top honors for 2008 to Houston, Dallas, Chicago, Cincinnati and Detroit in rank order. In his story about the rankings, which also include lists of medium and small metro areas, Ron Starner says, "Energy investments dominated the news in Houston last year, as evidenced by the fact that six of the 10 largest capital investments in the metro area of nearly 9,000 square miles (23,310 sq. km.) occurred in either the energy or chemicals sectors."

Mark Long Source: ingramsonline.com

'Near-Shoring' on the Rise

• In the Kansas City Business Journal, Mark Long of Zimmer Real Estate Services LC says, "rising Chinese labor costs are among the drivers behind 'near-shoring,' an emerging trend that involves moving manufacturing and sourcing operations closer to end-users." The article identifies Mexico as one probable location for facilities involved in this shift.