After years of discussion, the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) have reached consensus on several key elements of their new lease accounting standards. Earlier this month, the IASB issued International Financial Reporting Standards (IFRS) 16, which will be effective as of 1/1/2019. FASB has indicated that the new Accounting Standards Codification (ASC) for the United States will be released sometime in Q1 2016. The primary departure from the current set of standards is that lessees reporting under IFRS and US GAAP (Generally Accepted Accounting Principles) will now be required to account for operating leases on their balance sheets. All new contracts, as well as existing contracts that expire after 1/1/2019, will be affected by the new standards.
Impact on your business
For lessors reporting under IFRS and US GAAP, the new standards will not only influence accounting but will also impact lease contracts, financial products with end users, lease programs and cooperation agreements with vendors. At DLL, we have been following the development of the new lease standards very closely over the last several years, and we remain highly committed to being a knowledgeable and guiding partner for our customers. DLL is well-prepared to help you manage the potential business and operational impacts of the new standards and explore related opportunities going forward.
With the announcement of the new standards, a new era in leasing begins. Although different knowledge and processes will be required, leasing will continue to be an attractive solution for optimizing business opportunities.
DLL - your transition partner
The new lease standards will likely cause several questions to arise, and DLL is ready to be your transition partner. This means providing you a tailored approach to accurately identify the potential impact on your business and define your individual business needs. We remain committed to helping make your business fit for the future.
Should you have any questions or concerns, please reach out to your account manager.