69% of the auditors said that their clients have raised the issue of potentially violating bank loan covenants
Banks are bracing for the impact — on two fronts — of a new federal rule that will change how companies account for the cost of leasing everything from equipment to automobiles to space in office buildings or shopping centers.
Read about what our very own CEO, Ane Ohm, said about the change.
MILWAUKEE, November 2, 2018 – In a survey of auditors at 77 US CPA firms conducted by LeaseCrunch®, 58% believe that the new recognition of a lease obligation will adversely affect loan covenants for their clients.
In 2019, new standards will be rolled out that make the process of accounting for business leases more complicated. CPA firms are beginning to prepare for the change, and LeaseCrunch has developed a software platform to assist them.