Create a task force to transition your company to IFRS 16 and ASC 842

1. LEASE
ACCOUNTING
TASK FORCE

2. Summary
Form a lease accounting task force at each major BU
with the following personnel:
o Controller / Accounting Manager
o Lease accountant
o Treasurer
o Operations manager
o IT Administrator

3. Controller role
o Decide on accounting policies and practical
expedients
o Communicate decisions to management
o Emphasize the importance of the project to non-
accounting personnel

4. Lease accountant
o Read through contracts, extract lease terms
o Consolidate data from other departments
o Create payment schedules, amortization tables and
depreciation tables (or generate through software)

5. Treasurer
o Provide incremental borrowing rates for
instruments with different maturities to match
lease terms

6. Operations manager
o Provide information whether the BU is reasonably
certain to exercise contract terms, such as early
termination, renewals, and purchase options
o Separate service charges from lease components
o Provide fair value of the leased asset

7. IT Manager
o Provide guidance in the search of a new lease
accounting software
o Understand the risk of purchasing third party
software vs. applications embedded within your
ERP