{"id":62489,"date":"2019-06-24t10:00:14","date_gmt":"2019-06-24t14:00:14","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=62489"},"modified":"2023-10-05t09:19:32","modified_gmt":"2023-10-05t13:19:32","slug":"are-you-ready-for-the-new-lease-accounting-standard","status":"publish","type":"post","link":"\/\/www.g005e.com\/2019\/06\/24\/are-you-ready-for-the-new-lease-accounting-standard\/","title":{"rendered":"are you ready for the new lease accounting standard?"},"content":{"rendered":"

\"dart<\/a>8 steps to take.<\/strong><\/p>\n

at the start of 2019, the implementation deadline for the financial accounting standards board\u2019s (fasb) new lease accounting standard passed for public companies.<\/p>\n

now, the focus \u2013 and pressure \u2013 is on privately held organizations, which must adopt the requirement by 2020.<\/p>\n

and new research suggests that many of these firms may find themselves scrambling to meet the deadline for compliance.
\n<\/p>\n

a survey of chief financial officers by robert half and global consulting firm and robert half subsidiary protiviti<\/a> found that 44 percent of private companies have not completed the transition to the new lease accounting standard. eighteen percent report that they have yet to begin the process.<\/p>\n

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given the complexity of the new lease accounting standard, procrastination is a risky approach because the work involved can be intense. \u201cwhile private businesses have learned valuable strategies from public companies\u2019 transition experience, many organizations still don\u2019t realize the amount of work required to adopt the new lease accounting standard,\u201d said tim hird, an executive vice president with robert half.<\/p>\n

he added, \u201cprivate companies with decentralized business units and high lease volumes will be most impacted, but any firm still in the early stages of the compliance process \u2013 or that hasn\u2019t started at all \u2013 will soon find pressures mounting and options dwindling.\u201d<\/p>\n

quick review: changes to lease accounting<\/h2>\n

for companies still ramping up with the new standard<\/a>, here\u2019s a quick review of changes to lease accounting. the new lease accounting standard puts an end to off-balance sheet accounting in relation to leasing and redefines common metrics such as gearing ratios. given the prevalence of leasing \u2013 including common office items like coffee machines \u2013 and renting, the new adjustments to the standard impacts almost every organization across industries.<\/p>\n

from an operations point of view, the lease accounting standard has a significant impact on accounting and finance functions. it will require your department to:<\/p>\n