AFLA Conference Archives-Lease Accounting Standards

Video Transcription

Video Summary

The presentation focused on the complexities and implementation of new lease accounting standards, particularly for automotive fleet management. The speaker, who praised AFLA for their event hosting and congratulated recent award winners, introduced two experts, Jeremy Giblin from Wheels and Brad Howitt from Element Fleet Management, to delve deeper into the topic. They shared insights on how these standards would affect balance sheets, emphasizing the importance of understanding lease terms and the nuances of operating leases. The presentation underscored that most leases, notably automotive fleet track leases, will undergo scrutiny for term evaluations, often determined by economic factors, which would dictate whether they remain off the balance sheet or are capitalized.<br /><br />Key points included the differentiation between operating and finance leases, the necessity for precise data evaluation, and potential challenges international companies may face. Jeremy and Brad discussed the significant organizational impact, advising early engagement in project planning and detailed review of master lease agreements to ensure compliance. Attendees were encouraged to prepare for these changes by consulting with financial experts to avoid under or overestimating assets on their balance sheets. The overall message was to stay proactive in understanding and applying the updated standards by the 2019 deadline to remain aligned with industry practices.

Meta Tag

Location Las Vegas, NV

Year 2017

Keywords

lease accounting standards

automotive fleet management

balance sheets

operating leases

finance leases

economic factors

master lease agreements

compliance

2019 deadline

Las Vegas, NV

2017