The FASB and the IASB recently made significant decisions in connection with their joint project to overhaul the current lease accounting standards. We expect that the proposed leasing changes will have significant financial statement impacts for many companies, as well as pervasive impacts well beyond financial reporting. While waiting for a final standard, companies can take certain steps now to begin assessing the implications around data requirements, technology, and processes.
The transition will require all hands on deck – procurement, IT, tax, treasury, operations, HR – in addition to finance and accounting. This paper provides insight on when and how companies can begin to prepare for the new lease accounting standards.