The practical expedient that allows companies to choose whether or not to separate lease and non-lease components is receiving mixed reviews. While electing the expedient would reduce the burden of implementing the new standard, there are also some drawbacks to consider.
Equipment leasing, if managed effectively, can offer a number of strategic financial and competitive benefits to your business. Through our work with some of the world’s largest companies, LeaseAccelerator has identified a set of 15 critical success factors that best-in-class companies use to manage their equipment leasing program.
This guide explains the five major steps you need to understand at the beginning of your project. Following these steps will reduce your likelihood of having to repeat steps later. Plus, it will help you on your way to a successful and efficient implementation project for Day 1 of the new standards and beyond.
Each year hundreds, if not thousands, of assets will come off lease. Some leases will be renewed. Equipment assets may be returned or purchased. Real estate leases could be expanded, contracted or terminated. Some of these changes such as moving out of your corporate headquarters building will have high levels of visibility. But others such as swapping out photocopiers in the Singapore office will not. Have you considered what process you will use for tracking lease renewals and other end of term events?