The new pronouncements may not only necessitate updates to existing fi nancial accounting policies, procedures and systems, but also aff ect controls and contracts.
Even if accounting policies are not aff ected, signifi cant new disclosures and lease management activities are required that suggest the need for planning.
We believe that most companies will need to consider making changes in the following areas:
- accounting policies and disclosures;
- application of judgment and estimation;
- related internal controls that will require updating, if not overhauling, to refl ect changes in accounting policies and processes;
- systems to capture, process and maintain new lease data and for ongoing maintenance;
- corporate and other taxes; and
- debt covenant compliance.