WASHINGTON, D.C., May 9, 2017 – The Equipment Leasing and Finance Association (ELFA) has released three informational resources designed to help lessors and lessees prepare for new lease accounting rules which take effect in 2019 for public companies and a year later for private firms. With a new article, an infographic and an organizational checklist, ELFA adds to its host of tools to address the questions and concerns of its members, end-users and other stakeholders on how the new lease accounting standard, ASC 842, will impact them. The following resources are available on ELFA’s website and at www.EquipmentFinanceAdvantage.org:
- Bylined article, “Changes to Lessees’ Financial Statements Under the New Lease Accounting Standard,” and accompanying graphic examine the impact of lease accounting changes on lessees’ key financial ratios.
- Infographic customized for lessees, “8 Steps to Ease the Transition to the New Lease Accounting Rules,” provides a reader-friendly snapshot of an earlier-released ELFA article.
- Organizational checklist for lessors to meet lessee needs under the new lease accounting rules, which outlines actions required from operational areas including Accounting/Tax, Operations/IT, Sales and Marketing, Credit, Asset Management, Legal/Contracts and Human Resources.
“ELFA is pleased to offer a wide range of resources customized to the specific needs of lessors and lessees to help as they transition to the new lease accounting standard,” said ELFA President and CEO Ralph Petta. “The information is compiled with the input and generous commitment of our Financial Accounting Committee so users benefit from a wealth of professional industry expertise. The good news is that there are many reasons to lease equipment, and the many benefits of leasing will remain intact under the new rules, from maintaining cash flow, to preserving capital, to obtaining flexible financial solutions, to avoiding obsolescence.”
Since the Financial Accounting Standards Board issued ASC 842 in February 2016, ELFA has released FAQs, tip sheets and articles, among other resources, which it encourages its members to share with their sales teams, vendor partners and end-users, including the following:
- FAQ: Answers to Your Questions About the New Rules
- Top 6 Tips for Lessors to Prepare for the New Rules
- White paper, “Navigating the New Lease Accounting Standard” – Learn what’s new in the rules; what the implications are; and what lessees and lessors need to do to prepare for the transition.
- White paper, “Changes in Lease Accounting” – Understand changes in the new rules; educate your sales teams, vendor partners and end-users about the rules; and allay potential customer concerns about the impending changes.
- Bylined article, “New Lease Accounting Rules: 8 Steps To Help Transition”
- Bylined article, “Industry Update: Benefits of Financing Remain With Lease Accounting Changes”
For ELFA’s lease accounting resources for:
The Equipment Leasing and Finance Association (ELFA) is the trade association that represents companies in the $1 trillion equipment finance sector, which includes financial services companies and manufacturers engaged in financing capital goods. ELFA members are the driving force behind the growth in the commercial equipment finance market and contribute to capital formation in the U.S. and abroad. Its 580 members include independent and captive leasing and finance companies, banks, financial services corporations, broker/packagers and investment banks, as well as manufacturers and service providers. For more information, please visit www.elfaonline.org.