Companies are either not addressing or are totally confused about the new accounting regulations as it pertains to leased assets. Leased copiers, leased vehicles and leased properties are all subject to new accounting standards and regulations. And, oh by the way, the regulations are starting in less than two years! Remember Y2K, the lead time and the preparation for that non-event? Unlike Y2K, this event is real--it is Y2K for accounting departments.
The new accounting standards are an effort to have one universal accounting principle worldwide. The US has been using Generally Accepted Accounting Principles (GAAP) standards and the Europeans have been using International Financial Reporting Standards (IFRS) for company valuation, balance sheet assets and income statements. The major difference between the two principles is how GAAP measures whether an asset is used for investment or for business purposes and the useful life of the leased assets. This, of course, is a general over-simplification of the changes and I have included a link to a white paper written by Deloitte & Touche US LLP. http://www.iasplus.com/usa/0810ifrsrealestate.pdf
The big concern for companies is to be proactive in this change and not reactionary to regulation compliance. Collectiveview's leasing module within it's Integrated Workplace Management Software (IWMS) can help companies mine the data necessary for CFO's to transition to the new standards.
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