Gartner Research

Overcoming the Operational Pitfalls of Lease Accounting Standard ASC 842

Published: 26 February 2019

ID: G00706519

Analyst(s): Finance Research Team

Summary

The operational implementation challenges of lease accounting standards ASC 842 and IFRS 16 force finance to form cross-functional teams organizationwide. This research will help corporate controllers who have not yet navigated the new standards avoid resource-intensive implementation pitfalls.

Table Of Contents

Lease Abstraction: Use Internal SMEs

Collection of Lease Population: Centralize With Cross-Functional Coordination

Step 1: Establish a Centralized Lease Collection Database

Step 2: Train Key Stakeholders on Lease Identification

Step 3: Standardize Policies and Procedures Throughout the Organization

Implementation of Lease Software: Plan for Shortcomings

Vendor Selection

Software Testing and Manual Workarounds

Conclusion

Recommended by the Authors

About This Research

Endnote

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