ATLANTA – (September 25, 2019) – Since the Financial Accounting Standards Board voted unanimously to propose delayed adoption of the lease accounting standards for private companies, organizations now have a greater opportunity to go beyond compliance and improve operational efficiencies when implementing the new standards.
The ASC 842 and IFRS 16 standards require all leases to be reported on the balance sheet, giving accounting teams greater visibility into their organization’s operations. “Finance and accounting leaders can use this information to better guide their decisions about what to lease or buy, and ultimately improve their return,” said Jim Dahlby, Vice President of Customer Success at PowerPlan.
Private companies can also consider the experiences of public companies who already implemented the standards and encountered more challenges and complexities than they expected. With the proposed standard extension, private companies should consider holistic, long-term lease strategies early-on in the implementation process. For instance, they might consider how they can boost integration between systems, develop a plan for training affected teams and improve overall business operations. “As they begin their adoption process, now is the time to set themselves up for success. Starting early and planning strategically can transform their adoption,” added Dahlby.
With the proper technology and support in place, the journey from compliance to long-term financial success can be straight-forward. To learn more about the tools available to help organizations with active lease portfolios, visit http://bit.ly/2kxOCQe.
About PowerPlan: PowerPlan software provides financial insight into how complex rules and regulations impact your organization – empowering you to make credible decisions that improve overall corporate performance. The integrated solution provides complete visibility starting with forecasting and monitoring to scenario planning and analytics while maintaining financial compliance. For more information, email firstname.lastname@example.org or visit www.powerplan.com.
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