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6 Must-Know Changes to Lease Accounting Standards
If you are leasing vehicles, then you are probably aware the new accounting standards, as determined by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), are going into effect shortly.
As a CFO, I get questions about the expected changes quite a bit. But, questions about it from fleet professionals? Not so much.
The absence of questions leads me to believe that perhaps fleet professionals are (1) not prepared or (2) unsure as to their role in the upcoming changes. While fleet professionals aren't going to be leading the charge, they will play a very important part.
It's important to remember that these changes should have little impact on your overall operations. But, you should be prepared for the effect it will have on your financial reporting.
I realize navigating the lease accounting standards changes can be daunting. So, I broke it down below and in the eBook The future of lease accounting. Here's a sneak peek:
- Why are these changes happening? The accounting boards want more financial statement transparency for investors (and other readers of financial statements).
- After more than a decade of discussions, new standards were issued by the IASB and the FASB.
- How will this affect your company? Off-balance sheet accounting for lessees will be eliminated.
- International convergence was not achieved.
- The benefits of leasing still exist.
- So what can you do to get ready for the accounting standards changes? I’ve put together a checklist for you.