According to an article post by the Journal of Accountancy, creating an inventory for all leases is one of the first actions experts say companies should consider in preparation for the converged lease accounting standard proposed by FASB and the IASB.

The writer noted, based on a KPMG webcast, that Johnson & Johnson has received two distinct benefits from creating its inventory of leases. One of which was creating a lease inventory, which has given J&J transparency into its leases, allowing evaluation of potential decisions that could create future business advantages if the proposal is approved.

The Journal said that J&J has been getting ready for a new leases standard for more than three years. The company operates in a decentralized manner and wanted to create a common platform and process to obtain and maintain all leases.

To read the Journal of Accountancy article click here.