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Lease Accounting Changes: Time to Mobilize THE LEASE ACCOUNTING CHANGES WILL HAVE IMPLICATIONS ON AND REQUIRE CHANGES TO DATA MANAGEMENT, TECHNOLOGY, LEASING POLICY, GOVERNANCE AND FINANCIAL REPORTING PROCESSES. TIME TO ACT IS NOW.

What has happened Since the release of the new US GAAP and IFRS lease accounting standards in early 2016, most corporations have primarily focused on learning about new reporting requirements and key implications for real estate (and equipment) leasing. As we progress through 2017, corporations are drastically shifting focus from education to mobilization asking the question, what steps need to be taken in order to comply with the new requirements by the first reporting period of 2019?

What you need to know • New lease accounting standards (US GAAP ASC 842 and IFRS 16) were released in early 2016. • The rules go into effect in 2019 for public companies and 2020 for private organizations. • These new rules apply only to companies that issue financial statements in accordance with US GAAP and/or IFRS (all public companies and certain private businesses.) • The major provision of the new rules is that all leases (12 month or greater) will now be reported on the balance sheet. This is a significant shift from the current rules that allow most leases to remain off balance sheet.

2017 Actions

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$ FINANCIAL IMPACT ASSESSMENT

EXAMINE RELEVANT DATA

VALIDATE EXISTING LEASE PORTFOLIO

DETERMINE ACCOUNTING POLICIES

ASSESS TECHNOLOGY READINESS

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