Accounting and finance organizations for many multinational businesses are currently working to create plans for two separate lease accounting standards: the Financial Accounting Standards Board’s ASC 842 and the International Accounting Standards Board’s IFRS 16.
The biggest mistake we see companies make as they initiate their accounting projects is underestimation.
The analysis by software provider LeaseAccelerator Inc. also finds only 8 percent of companies have put a dollar figure on the material effect they expect, and it ranges from $1.2 billion to $13 billion.
Today, the International Accounting Standards Board announced its new lease accounting standard – IFRS 16 Leases. Hans Hoogervorst, IASB Chairman, commented