Plenty of Work Ahead for Lessees Adjusting to New Leasing Standard
MAR 29, 2016 - 7:51 am
According to a recent article that appeared in Accounting Today, the new lease accounting standard is likely to have a much greater impact on lessees than lessors.
Accounting Today quotes leasing industry specialist Bill Bosco as saying, “The big change is for lessees, and it is a huge change in terms of work. Transitioning to the new rules means booking every operating lease as an on-balance sheet transaction and then setting up a process going forward. Lessors don’t have a lot of work to do, but the lessees will.”
One of Bosco’s clients estimates it would take about an hour to put a single lease into a system. “For Walgreens that would translate into 8,000 man hours, the equivalent of approximately three man years’ worth of work,” Bosco was quoted as saying by Accounting Today.
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