12 Step Lease Accounting Project Charter
If your business is affected by the new lease accounting standard, then this guide will help provide you a supplemental framework so you can stay informed, plan ahead, and set your organization up for continued success and a smooth transition.
- Obtain a full understanding of ASC 842 and/or IFRS 16 and raise internal awareness.
- Set a compliance timeline.
- Identify and meet with a cross-functional group of leasing stakeholders.
- Create and meet with project team.
- Decide if a software solution for lease management and reporting is needed, if not, what is the alternative?
- Compile a list of all contracts and determine if they contain leases.
- Evaluate compliance with existing ASC 840 accounting standards.
- Evaluate the FTE requirements and evaluate staffing/training plans as needed.
- Establish internal accounting policies around leasing.
- Evaluate the process flow for leases and adjust to ensure efficiency.
- Review processes, software policies and pro-forma results with auditors.
- Set up a sustainable process for managing leasing data.