Many organizations are beginning to realize the impact that the new FASB and IASB lease accounting standards will have on their finance and real estate teams. For companies with a large number of real estate or equipment leases, compliance with the new standard will require a significant amount of effort and time.
Although the new standard doesn’t go into effect for public companies until December, 2018 (2019 for private companies), a two-year look back will be required, so calculations will have to be completed for 2017 and 2018 as well. That’s why some organizations are working to get the structure in place during the rest of next year so that all 2017 transactions will be properly recorded as they occur, avoiding the pain of recreating the schedules later.
While the task may be daunting, there are steps you can take now to make sure that you avoid the expense and pain of a last minute scramble for compliance. Here are the most important steps to getting prepared.