New Accounting Rules May Take Quants By Surprise

Quant hedge funds are being caught out by new lease accounting rules brought in at the beginning of this year, that’s according to a research note published earlier this week by Morgan Stanley. Q4 hedge fund letters, conference, scoops etc Under new US and GAAP and IFRS accounting rules, companies are required to recognize operating lease assets and debt-like liabilities on their balance sheets from the beginning of 2019. Under previous rules, companies only had to disclose and capitalize financing or capital leases, hiding a significant portion of future liabilities from shareholders and investors. The new rules better reflect the…