In 2017, changes to the accounting rules (FAS13 and IAS17) dealing with leased assets will force organizations to reconsider how they fund IT investments and will make cloud arrangements more attractive. IT leaders need to immediately start looking at how these changes will affect their businesses.
- What's Changing
- Obtain Independent Financial and Legal Advice
Impacts and Recommendations
- Where asset control and ownership can be traced to an organization, CIOs must realize that lease arrangements are unlikely to meet the standards for expensing those costs
- FAS13 and IAS17 will require CIOs to capture and report all lease agreements
- Multiyear lease arrangements will result in CIOs seeing an increase in the reporting of assets and liabilities on the balance sheet
- CIOs will be forced to re-evaluate the make/buy and hosting decisions for new application deployments
Gartner Recommended Reading
©2019 Gartner, Inc. and/or its affiliates.
All rights reserved.
Gartner is a registered trademark of Gartner, Inc. and its affiliates.
This publication may not be reproduced or distributed in any form without Gartner’s prior written permission.
It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact.
While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information.
Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such.
Your access and use of this publication are governed by Gartner’s Usage Policy.
Gartner prides itself on its reputation for independence and objectivity.
Its research is produced independently by its research organization without input or influence from any third party.
For further information, see
Guiding Principles on Independence and Objectivity.