Lease Accounting Changes
To fully comply with ASC 842 or IFRS 16, leases of all types need to be captured and reported on. For many companies, collecting dispersed leases and the high level of data detail required is the first of many challenges faced when adopting and maintaining compliance.
Lease Accounting Changes
To search for leases in many organizations requires a well-coordinated effort that extends beyond the real estate department. While real estate activity likely has the greatest individual financial impact, other business activities may also result in lease contracts that must be captured. 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.