Lease accounting in retail and consumer products: Transformational change

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06/25/2013 by Retail & consumer
Lease accounting in retail and consumer products: Transformational change

At a glance

The changes to lease accounting proposed by the FASB and IASB will bring all leases onto the balance sheet and change income statement recognition, business processes, systems, and controls. Retail and consumer companies should prepare for the upcoming business process changes.

The changes to lease accounting proposed by the FASB and IASB will bring all leases onto the balance sheet and change income statement recognition, business processes, systems, and controls. The impact on retail and consumer companies, which typically have a large number of operating leases, will be significant.

Changing accounting standards will have far-reaching impacts on business processes, systems, and controls. Companies should begin now to prepare, in a measured way, for the upcoming business process changes.