Lease Accounting


New lease accounting standards are beginning in 2019 and require companies to record the value of all leases with terms of more than 12 months on their balance sheets. The goal is to increase transparency and global consistency. Collection of this lease information can be challenging as leases are currently hidden throughout many departments, locations and disparate financial applications. For large companies this means sorting through and extracting relevant information from thousands of leases and pieces of paper not currently in any systems or in many cases, in different languages across multiple countries.

Preparation. Challenges. Strategic opportunities. Are you ready?

The new rules are requiring more effort than expected, and impacting many company processes in budgeting, reporting, procurement, IT and daily operations, and managing and educating the financial impact.    Full FASB (ASC 842) and IASB (IFRS 16) lease accounting standards

Think this is just financial reporting? Think again. We’re here to help. Contact Us today

Rule Change Checklist

   Have you started? Trouble getting started? Hit a wall?

 

Do you know your company-wide number of leases? Do you know where they are located?
Do you know the new FASB financial compliance requirements?
Do you have a company-wide plan to identify all assets, collect all leases and extract all data?
Have you defined your new lease accountability processes? Procurement and lease evaluation?
Have you established a dedicated, centralized resource team? Set capture and operational standards?
Do you have lease capture tools that integrate with your accounting software?
Do you have a financial plan for reporting impact and financial gains or losses?
Do you have a clear understanding of needs to define an RFP and vendor selection process for Lease Management software?
Do you know your non-compliance risk mitigation?
Do you have the knowledge and experience on your staff to support this large effort?


SHAREHOLDER & FINANCIAL IMPACT PLANNING

    Have you planned for the new reporting impact on:

Companies financial performance: EBITA, profits, assets and liabilities.
Company performance measures and executive compensation?
Share price and market capitalizations? Credit ratings? Bank/Loan covenants?
Strategic opportunities to improve financial performance?

 


Get Started Today


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