According to the Wall Street Journal, the new lease accounting standards have given some companies the opportunity to find unexpected savings, despite the more time-intensive reporting requirements.
The Journal reports that the new standards were enacted to provide greater transparency for investors and lenders, but the consolidation of the leases in one place can also give companies better insight into their own finances.
However, the Journal adds that it may take time to realize some of these financial benefits, depending on the nature and length of the lease.
As we welcome in the new year of 2019, we are excited about new opportunities, new business prospects and a fresh look at how to achieve success in our business lives. But we would all be well advised to consider,... read more
Although ASC 842 and IFRS 16 were released several years ago, many lessees will only first notice how the changes affect financial reporting in the first reporting period for 2019. Many lessees will not be subject to the new standards... read more