Here Comes Lease Accounting: 7 Things Companies are Saying

Some may think we have gone off to the accounting deep end here…  Please bear with us.

Many people know that the Financial Accounting Standards Board (FASB) issues new guidance periodically for accounting standards and that Revenue Recognition and Lease Accounting are quickly coming up for implementation dates.  Many companies are in the throes of complying with the Revenue Recognition guidance and this is complicated stuff.  The next wave of Lease Accounting is quickly following and companies will be dealing this in 2017.  This area can be complex as well for some companies.  We did a quick survey over the last few months with companies in the Kansas City area in regards to their Lease Accounting readiness and here is what we found:

  1. Many if not all companies are aware of the upcoming needs and have been getting updates from their external auditing firms and other sources.
  2. Few companies see any business benefits from complying with the standards though understand the transparency reasons.
  3. A few companies have inventoried their lease populations as a starting point.
  4. Some companies are investigating lease management software that could assist with future management and reporting of the leases.
  5. No companies are changing their business processes as yet.
  6. Very few companies are thinking about how to get business value out of this seemingly compliance driven exercise.
  7. Large accounting firms still charge extremely high hourly rates for their services and companies love to find way to minimize these fees.

We at Core Catalysts firmly believe that companies can minimize their efforts at implementing this compliance change while receiving some tangible business benefits through the efforts.  We have achieved these type of results before with past implementations (remember the Sarbanes Oxley days?).

Call us crazy, challenge any of us – we execute like none other with a top notch team that gets results every time.

Watch our web site for upcoming knowledge sharing, success stories and practical solutions.

Jim Wadella, Owner – Founder