Lease accounting is the process by which businesses record the financial impact of agreements to rent or finance the rights to use specific assets, also known as leasing. The reporting standards for lease accounting are maintained by the Financial Accounting Standards Board (FASB) in the United States, the International Accounting Standards Board (IASB) internationally, and the Governmental Accounting Standards Board (GASB) for state and local entities in the United States.

Public and private companies that issue US GAAP financial statements are required to follow the new lease accounting standards. Smaller, independent businesses will most likely not be impacted by the updated rules.

In regard to how the new changes may impact your business, the accounting, legal, purchasing, facilities, IT, financial reporting, FP&A, tax, and treasury departments will all be affected. LeaseQuery’s software, expanded on below, promotes improved collaboration and communication for all teams in the organization.

ASC 842, IFRS 16, and GASB 87are the new standards being implemented. According to these rules, all leases must be recorded as assets and liabilities on the balance sheet.

If you think LeaseQuery’s lease accounting software would be a good fit for your business, please contact Polaris Business Solutions; info@polaris-business.com.