We’ll highlight six steps to help you get organized:
Lease accounting is easier if you break it down into the key steps to follow to get compliant. In this guide, we’ll walk through the what, who, where, and how of finding and loading leases as well as starting your accounting. The ”why” is already clear – the lease accounting standards are driving most organizations to change how they handle leases. The “when” is different for different groups – private companies have an early 2022 deadline, government departments have until their fiscal 2022, and compliance deadlines for public companies and most international companies have already passed.
Most challenging category of leases to find and analyze
Since the publication of the new lease accounting rules, one of the most common questions asked by companies is – How do I find out what we lease? In most cases, the real estate team knows what buildings are being leased. But what about all the other leases, for things like photocopiers, office furniture, laptops, servers, forklifts, trucks, cars, or even aircraft?
A study by LeaseAccelerator found that private companies had the most difficulty finding and analyzing their equipment leases, followed by real estate leases, embedded leases, and international leases.