KPMG Advisory Principal Kevin Bogle from the New York office developed this piece to provide additional insights on timing on the changing Lease Accounting standard. The article was published in the March-April edition of NJ CPA journal.
Although the 2019 implementation deadline for the new lease accounting standard seems a long way off, companies must begin preparing now. Compiling a complete inventory of a company’s lease agreements and key terms is a critical first step.
Consider: If each lease takes three hours to analyze, and a company has 2,000 leases — whether for buildings, vehicles, printers or other equipment — it may take three1 full-time employees a full year to complete building the inventory of leases and abstracting relevant information.