Submitted by Benjamin Gardner on Mon, 03/27/2017 - 02:00
If you haven’t done so already, you urgently need to form a cross-functional FASB/IASB project team — comprising key people from your real estate, finance and IT departments (and possibly other functional departments too). This team of experts should be tasked with thoroughly reviewing your existing lease accounting processes to identify the changes that need to be made.
Submitted by Benjamin Gardner on Mon, 03/13/2017 - 03:00
The new FASB/IASB lease accounting standards will put a significant new reporting and forecasting burden on all lessees of real estate, vehicles and equipment. This, in turn, will place greater demands on the capabilities of an organization’s accounting technology.
Submitted by Benjamin Gardner on Mon, 02/13/2017 - 02:00
The most dramatic change — both in the United States and around the world — is the requirement for all lease assets with terms longer than 12 months to be recorded as an obligation and a related asset on a company’s balance sheet.
Submitted by Benjamin Gardner on Mon, 01/30/2017 - 02:00
When FASB and IASB began their joint project to revise lease accounting standards, the intention was to produce a standard that would provide consistent accounting for leases on a global basis. However, they have not been able to fully achieve this goal.
Submitted by Benjamin Gardner on Mon, 01/16/2017 - 02:00
In 2006, the FASB and IASB set out to revise lease accounting standards with the aim of giving investors a more transparent view of companies’ leasing activities. A decade later, the resulting changes are intended to improve the accuracy of financial reporting about lease liabilities.
Submitted by Benjamin Gardner on Mon, 01/02/2017 - 02:00
“By failing to prepare, you are preparing to fail.”
― Benjamin Franklin
If your organization leases commercial real estate, your whole approach to lease accounting and financial reporting — and even the necessary capabilities of your accounting technology — will never be the same again after 15th December, 2018 and 1st January 2019. That’s when the new lease accounting standards set by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) respectively will come into effect worldwide.
The new Lease Accounting standards are here. Organizations now have a task at hand to plan and prepare to implement the necessary changes,
focusing on requisite data, functions, operations and technology.
Key processes need to be evaluated for possible impacts on compliance, the risk of disruption, and their effect on the real estate portfolio.
Finally, organizations need to assess the capabilities of their current systems and determine whether they are adequate to support the new lease accounting rules.