Remember back when the International Astronomical Union downgraded Pluto from being a planet to a “dwarf planet?” As much as that shook up the scientific and astronomical world, new FASB and IFRS lease regulations have sent tremors through the business community.
In Nov. 2015, the Financial Accounting Standards Board (FASB) voted to accept a new lease accounting standard, the idea being that companies holding leased property are to recognize assets and liabilities arising from all their leases — but only if the lease terms are more than 12 months.
What "lease-pocalypse" means to you
So while you may be a small company, and you may think the changes may not affect you, if you are leasing any property — be that business technology such as copiers and printers, real estate or even vehicles belonging to your fleet — you may very well be touched by this decision.
In fact, under the new rules, public companies and private companies with public debt must move leased property to their balance sheets by Dec. 15, 2018, and private companies, the same, by Dec. 15, 2019.
Fear not: There's help from the cloud
With those deadlines quickly approaching, the challenge for businesses large and small alike will be not necessarily the re-categorization of their leased property, but rather the identification of affected properties in order to make that re-categorization and move it to the balance sheet.
As you can imagine, many organizations will find the process demanding of time and effort as they work to determine and locate the affected property in order to make the reclassification in time to beat the deadline.
For that reason, some technology companies such as R.K. Black and Ricoh are offering businesses software tools to help companies reach accurate compliance quickly and efficiently.
Built into the cloud-based, SaaS platform Ricoh Lease Administration Services is a service that addresses the nuances of the new regulations while centralizing and automating lease information management.
The tool performs workflow analysis, lease compilation, data identification, systems integration, planning and report management and ongoing FASB compliance support, basically taking what would be an arduous operation and turning it into a walk in the park — so to speak.
Contact us
If meeting the FASB deadline seems a daunting task to you and you would like to relieve yourself or your company of that pressure, contact us by either calling us at 405-943-9800 or clicking on the red button below. Be sure to tell us you want to know more about the Ricoh Lease Administration Services tool and we’ll be sure to contact you.
About R.K. Black, Inc.
R.K. Black, Inc. is an Oklahoma City-based, family-owned leading provider of office technology solutions to small and medium-sized businesses in Oklahoma and Kansas. We specialize in everything business technology from copier, fax, printer and scanner technology to document management, onsite paper shredding services, VoIP phone systems and managed IT support to video surveillance solutions.
If you want to learn more about us, feel free to explore the website, read our other blogs or click the button below to be contacted by one of our reps and tell you! Also, be sure to keep watching our social media channels on Facebook and Twitter for more business tips from our blog.
