New leasing guidance from the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), designed to improve the transparency of leased assets on financial statements, will have a significant effect on the financial reporting requirements and operational planning for companies.
The day-long event highlighted the technical accounting aspects of what’s changing, the practical implications of how the new standard will affect systems requirements, business processes and procedures, as well as the standard’s effects on business and operational decisions.
For many companies, the impact will be felt across organizations as accounting processes, policies and procedures will need updating, and IT systems will need to be evaluated and possibly upgraded to deal with the standard’s reporting requirements.
The event also featured the release of a report by the Financial Executives Research Foundation (FERF) and research partner EY, highlighting the readiness state of companies for adopting the new standard. According to the report, Paving a path to success: preparing for new lease accounting standards, 50 percent of all respondents have yet to take steps to prepare for the new standard, while 11 percent of companies have started to perform a readiness assessment and another 7 percent said their project team has begun to create an inventory of lease data.
Find out more about this event through FEIconnect, FEI’s member-only online community, where you can gain access to the full article titled, What We Learned – Lease Accounting Standards.
