PowerPlan added seven customers to its user base who are benefiting from the company’s lease accounting module, which ensures companies are fully compliant with the new FASB and IASB lease accounting standards.

With the lease accounting standard changes (ASC 842/IFRS 16) from FASB/IASB, leases with terms greater than 12 months will move onto the balance sheet. It is anticipated that trillions of dollars of lease obligations are set to hit corporate balance sheets in 2019. With a look back period beginning in 2017, companies, especially accounting departments, must prepare for the changes now.

“Organizations of all sizes are being impacted by the new lease standards. Companies need to understand that adoption may be more complicated than expected due to variables like embedded leases, renewal and purchase options, and variable payment,” said Elizabeth Cowart, vice president of customer operations and product management, PowerPlan. “PowerPlan’s purpose-built lease accounting solutions enable the management of all lease types and are compatible with numerous accounting treatments for multiple sets of books to meet the requirements of various organizations including GAAP, IFRS and FERC.”

With proper planning and the right tools, companies can use this change as a catalyst for improvement. According to a recent study by EY, 63% of companies say lease accounting changes are an opportunity to deliver transformation to their businesses including, re-engineering processes for efficiency and effectiveness, identifying strategic cost reduction opportunities and identifying tax efficiencies.

PowerPlan software provides financial insight into how complex rules and regulations impact organizations.