Lease Accounting (ASC 842/ IFRS 16)
The new ASC 842 / IFRS 16 lease accounting standard impacts many areas of an organization, not just accounting. The adoption process is a practical challenge. Maple Tree Consultants’ functional approach is designed to simplify the process and create a sustainable solution.
Leases are a way to use property or equipment and pay over time. Today, operating leases are off-balance sheet, but the new guidance reflects operating leases with terms greater than one year on the balance sheet. Accordingly, these lease items are both an asset (the right to use the leased item) and liability (the obligation to make lease payments), similar to capital leases today.
Maple Tree Consultants has experience assessing the impact of and implementing ASC 842 / IFRS 16. The standard requires significant judgment, both in applying the guidance and in considering what could be far-reaching impacts to companies. Finance systems, procurement, business processes, operations and financial reporting all need to be carefully considered as you respond to change.
Maple Tree Consultants goes beyond creating a set of recommendations – we become an extension of management to ensure the implementation is practical and tailored to your business needs.