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What has happened

Since the release of the new US GAAP and

IFRS lease accounting standards in early 2016,

most corporations have primarily focused on

learning about new reporting requirements

and key implications for real estate (and

equipment) leasing.

As we progress through 2017, corporations are

drastically shifting focus from education to

mobilisation asking the question, what steps

need to be taken in order to comply with the

new requirements by the first reporting period

of 2019?

What you need to know

• New lease accounting standards (US GAAP ASC 842 and

IFRS 16) were released in early 2016.

• The rules go into effect in 2019 for public companies and

2020 for private organisations.

• These new rules apply only to companies that issue financial

statements in accordance with US GAAP and/or IFRS (all

public companies and certain private businesses.)

• The major provision of the new rules is that all leases

(12 month or greater) will now be reported on the balance

sheet. This is a significant shift from the current rules that

allow most leases to remain off balance sheet.

Lease Accounting Changes:

Time to Mobilise

THE LEASE ACCOUNTING CHANGES WILL HAVE IMPLICATIONS ON

AND REQUIRE CHANGES TO DATA MANAGEMENT, TECHNOLOGY,

LEASING POLICY, GOVERNANCE AND FINANCIAL REPORTING

PROCESSES. TIME TO ACT IS NOW.

VALIDATE

EXISTING LEASE

PORTFOLIO

DETERMINE

ACCOUNTING

POLICIES

EXAMINE

RELEVANT DATA

ASSESS

TECHNOLOGY

READINESS

1

2

4

5

3

2017 Actions

$

FINANCIAL IMPACT

ASSESSMENT

62 The Occupier Edge