Due to changes to lease accounting proposed by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) in August 2010, PricewaterhouseCoopers has compiled a list of actions companies can take now to prepare for the changes.
The FASB and IASB proposal consists of a converged lease accounting standard that addresses supposed weaknesses of existing practices. The proposal aims to ensure that assets and liabilities that arise from lease contracts are reflected in company balance sheets.
• Taking inventory of existing leases and assessing potential effects to your company
• Considering effects on major business initiatives such as systems and compensation plans
• Assessing data that will need to be collected and analyzed prior to the adoption of the regulations
• Establishing training and communication plans with employees and stakeholders