Disclosure
Disclosure is the act of releasing all relevant information that may influence an investment decision. To make investing as fair as possible for everyone, companies must disclose all relevant information.
In addition to the recognition of leases on the balance sheet, the new accounting standards (IFRS16, ASC842 and GASB 87) also require additional disclosures. These are designed to help investors and other stakeholders to understand real estate and asset related liabilities, the timing of financial commitments and the aspects of uncertainty around cash flows arising from leases.
Additional disclosures might include:
• the reasoning behind the decision to include or exclude lease renewals in the capitalization.
• additional information, both qualitative and quantitative, on the amounts as recorded in the financial statements.
• the costs for removing tenant improvements and explaining whether these costs are estimated or based on agreement.