New IASB & FASB Accounting Standards May Significantly Impact Your Balance Sheet
Did you know new accounting standards could change the way you are required to record your leased vehicle inventory on the company’s balance sheet? Beginning in December of 2018, the Financial Standards Account Board (FASB) and the International Accounting Standards Board (IASB) will implement new regulations designed to improve reporting transparency as it relates to lease assets – and companies are strongly encouraged to begin preparing for these changes now.
Companies taking a proactive approach will be better prepared and at less risk of non-compliance once the new accounting standards take effect. ARI’s Vice President of Finance, Paul Azores recently explained the impact of these new accounting standards in an article featured in Construction Executive.
Azores highlights the effects new accounting standards may have on companies with leased vehicle fleets. The pending regulations are being put in place to increase transparency when it comes to lease inventory and are likely to bring changes to those fleets who do not currently account for leased assets on their balance sheets.
Although the new accounting standards will bring changes to leased vehicle fleets, leasing is still an attractive option for most companies. Azores says, “Given the right circumstances, leasing will allow a company to improve cash flow with the potential to reap additional benefits.”
To see how your fleet may be affected, please visit Construction Executive to read the entire article. For additional information regarding the new accounting standards, click here to read a recent blog by ARI’s Senior Vice President, Finance, Gernot Leinenbach.