It feels like 1998 and 2002 all over again – when the finance community last faced the threat of imminent deadlines, related to Year 2000 implementation and Sarbanes-Oxley compliance, respectively. The ambiguity, pressure, impedance, and anxiety that we experienced then have all come roaring back. This time, it’s the deadline for complying with the new IFRS lease accounting standard changes that looms ahead of us.
Last week we published a new whitepaper on the coming lease accounting changes for equipment lessees. The official title is “How to Prepare Now for the Coming Lease Accounting Changes. Companies Will Need 12-24 Months to Create and Implement Processes and Systems To Comply with the New Standard. Companies Can Capture Significant Savings as an Added Benefit of the Comprehensive Compliance Process.”
We researched and wrote the whitepaper over the last 5 months for two reasons. Our corporate and non-profit lessee clients have been asking us to help them understand the lease accounting changes and how they can prepare. They also want us to keep them abreast of the FASB/IASB’s discussions in an efficient way. This is our response to them. We are also responding to the growing anxiety in the market – not just among the Fortune 1000 lessees that we serve, but also among lessors. Many lessors have expressed their fear and uncertainty about what might happen when the standards take effect. How will companies respond?
We decided to take on the fear directly and provide timely, actionable information to the leasing community. The whitepaper explains in detail the potential issues facing equipment lessees under the new lease accounting standards and presents a comprehensive 9-step plan for implementing a transition project and improving the financial performance of your lease portfolio in the process. Lessees can take immediate action with this document. If you have not done anything yet to prepare, this will help you get back on track. If you are already working on it, this will help you sharpen your strategy and tactics.
Lessors can share the link above with their lessees, encourage them to download and read the whitepaper, and then engage lessees in a substantive discussion about how the lessor can help lessees through the transition.
As a supplement, we will be sending regular updates of the FASB/IASB’s deliberations and decisions along with our commentary to anyone who downloads the whitepaper. We also published our first update this week after the whitepaper went to press, as there were many substantive issues addressed recently. Of course, if you have any feedback, thoughts, or edits along the way, please share them with me and I will make sure they are properly addressed: firstname.lastname@example.org.
If there is anything that we learned from our Y2K and SOX compliance experiences it is this: a well-informed implementation plan reduces fear, risk, and cost. Changes like this don’t have to be scary. So, get plugged in and make it easy to transition to the new lease accounting standards.