By now you must have heard of FASB – 842. This is the latest accounting standard update that is now implemented by publicly held companies while privately held ones still have until December 15, 2019 to comply.
As with any accounting standard update, preparation is critical. Rolling out an update like FASB – 842 requires a series of steps and testing before going live.
If your company is affected by this update, the first step is to look at your reporting processes. You might then need to rewrite some of your guidelines and procedures and possibly revise your use of GL accounts. For some businesses, there might even be a need for modification of some of the integrated transactions to GL and revision of audit processes.
This accounting update essentially demands for you to include operating lease´s liabilities and assets on lessee companies´ balance sheets on top of capital leases. Both lessor and lessee companies need to comply in various ways.
If your business is affected, it could mean drastic changes to your balance sheets. Operating leases have, for a long period now, been off sheets. With this update asking you to include them again, it can increase the company´s liabilities and assets.
Why is this important? It is all about your company´s ability to loan.
Epicor Financial Planner (EFP) is Epicor´s cloud solution for financial reporting and budgeting. This complete FP&A solution allows your business to have the ability to forecast your balance sheets and link these forecasted balance sheets to your income statements.
Implementing Epicor Financial Planner allows you to painlessly comply with this update and many other updates in the future as it is a flexible solution that you can configure to your specific needs and requirements. It makes your end to end budgeting and reporting process easy to manage and modify without needing IT intervention.
Best of all, with EFP, you only need 1 software for financial reporting, financial budgeting and planning, and financial consolidation. You can even add KPI tracking to it as it has robust KPI monitoring abilities as well.
Try out a limited 30-day trial promo of EFP or see a product demo by emailing email@example.com.
You can also visit www.dsp.se for more information.