AP NEWS

Auditors Express Concern that Spreadsheets Will Create Compliance Issues with the New Lease Accounting Standards

January 15, 2019

ATLANTA, Jan. 15, 2019 (GLOBE NEWSWIRE) -- With the FASB and IASB lease accounting standard deadline already here for public companies and quickly approaching for private companies, many are finding that spreadsheets won’t fully support their compliance efforts. The changes to the lease accounting standards impact not only accounting teams but other departments as well, so it is crucial for organizations to maximize their compliance strategies and minimize audit risk.

“Errors, even to the smallest degree, carry audit risk,” said Andy Miller, retired partner from Ernst & Young. According to Risk Management, recent cases illustrate the very real risk posed by improper spreadsheet management. For example, in 2018 a prominent financial institution was fined millions due to a simple user error in a spreadsheet. To help minimize audit risks and improve controls, organizations are turning to software. Automated lease accounting solutions take the risk out of spreadsheets and manual processes, and help make an organization’s accounting fully auditable. This is key because lease accounting will carry downstream impacts to other departments, including the tax group.

Organizations have selected software to have greater confidence in meeting standards like ASC 842 and IFRS 16. “Implementing an automated solution, like PowerPlan, will help organizations quickly comply while reducing audit risk and enabling them to provide audit trails and version tracking,” added Miller.

PowerPlan is a leading lease accounting software solution for organizations around the globe. Compliance with the FASB and IASB lease standards began at the beginning of this year for public business entities, while privately held companies have until the start of 2020 to comply. To learn more about PowerPlan’s Lease Accounting Solution, visit http://bit.ly/2VWbUNq.

About PowerPlan

PowerPlan software provides financial insight into how complex rules and regulations impact your organization – empowering you to make credible decisions that improve overall corporate performance. The integrated solution provides complete visibility starting with forecasting and monitoring to scenario planning and analytics while maintaining financial compliance. For more information, email info@powerplan.com or visit www.powerplan.com.

For more information, contact: pr@powerplan.com

AP RADIO
Update hourly