Whether you are the lessor or lessee, if you have any leases lasting over one year (including renewals), you will be impacted by this standard.
The new standards become effective in 2019 for public companies, and 2020 for privately held enterprises.
Consider the following steps:
- Assign an implementation team. Involve us in the process.
- Read your lease agreements to determine how those leases will be recorded on your balance sheet, and determine impact on your P&L.
- Look at this analysis as an excellent opportunity to document your key terms or rethink some of your key terms and renegotiate your contracts with lessees/lessors, with more favorable terms to you.
- Determine the impact of the new standard on your EBITDA and loan covenants.
- Start conversations with your bank now to mitigate negative impact and any surprises.
We can help you every step of the way. We realize you might not have internal resources to deal with this issue. We are here to assist you and guide you through the process.