It is now an international accounting requirement for leases to be reflected on balance sheets. Successful adoption of the new ASC 842 standards will require a number of components – and one of the most important is collaboration. Where finance and real estate teams work in isolation from each other, and from counterparts in HR, legal, and procurement, they risk missing crucial nuances that may have a major impact. This will be particularly significant if they’re attempting to handle complex calculations across separate platforms.
In implementing the standard, fully comprehending its impact, providing full visibility, and enabling collaborative working, spreadsheets are simply not up to the task. Specialized systems will be required to handle and automate calculations that are otherwise time-consuming and error-prone. This infographic demonstrates the benefits of departmental collaboration and shows how, by bringing departments together with one common approach, business leaders can meet the requirements and realize the benefits.