In the complex world of lease accounting, staying compliant with the ever-changing rules and regulations is key.
Lease Accounting Changes
Complying with ASC 842 or IFRS 16 necessitates accurate capturing and reporting of all types of leases, a task that can be challenging when leases are dispersed across various departments.
Contracts may originate from human resources (housing and automobiles), manufacturing (production equipment), warehousing (forklifts), distribution (third-party logistics, railcars, trailers), IT (servers), administration (computers and copiers), and other areas in the organization.
Lease Accounting Adoption
If not monitored, lease data can become stale in a very short time. Companies must plan for dedicated resources and processes to keep the lease data current and perform asset-level accounting calculations that support financial reporting and disclosures.
The initial adoption of the lease accounting standard often requires a concentrated effort executed by a diverse team from many different disciplines, including accounting, real estate, procurement and many others.
Expert Lease Accounting Services
Stay compliant with lease accounting changes and smoothly adopt new standards with our comprehensive lease accounting services.