Lease Accounting Issue
In 2020 accounting standards are changing for most businesses in the United States. As a result, due to specific regulations in the California Financial Code, most independent escrow companies will be required to deposit additional funds into their accounts to cover the cost of one year of lease payments. This equates to thousands of dollars for even the smallest escrow companies and more than a million for some of the larger escrow companies.
Assembly Bill 412 has been introduced into the California legislature with the goal of mitigating the impact of the change in accounting standards to keep the status quo. RELAW, APC is actively supporting this bill and we hope you will too. To learn more about the issue please review a copy of our White Paper.
California Assembly Bill 412
California Assembly Bill 412 "Escrow agents: asset requirements.”