WeWork's CEO says the way it rents out office space makes companies' financials look better. Some experts aren't sure how legitimate the pitch is.www.businessinsider.com
File this under questionable accounting advice:
WeWork Co-president and Founder Adam Neumann said that because WeWork calls its office space agreements memberships, rather than leases, companies can continue to expense their WeWork arrangements under ASC 842 rather than putting them on the balance sheet like every other lease.
I'm no lease accounting expert, but this seems to violate the core principle of the new lease accounting standard. Can we really get away with this?Read more...