CHP Consulting publishes technology white paper on lease accounting exposure draft
Entitled "How lessors are meeting new challenges using futureproof technology", the white paper addresses what CHP Consulting considers to be the three principal systems issues raised by the proposed changes to lease accounting set out in the Exposure Draft: accounting under the two new lessor models, accounting on a "likely outcome" basis, and managing the transition to the new regime.
The report says: 'Under the proposed changes to lessor accounting, lessors will need to select and apply one of the new methods for each lease in their portfolio. As a result, lessors will need to perform additional calculations, hold different balances and recognise income differently, all of which will require changes to existing accounting processes. For the vast majority of lessors, this will entail changes to their existing lease accounting systems.
'Designing, developing and testing the necessary software changes will not be a trivial exercise, and may prove a significant challenge for lessors that rely on in-house systems or those based on legacy technology.'
For a free copy of the report, visit: http://www.chpconsulting.com/