Alta Advises Lessors on New Accounting Rules
FOR IMMEDIATE RELEASE
RENO, NEV, Aug. 23, 2010
The Alta Group’s new accounting compliance and implementation division led by Shawn Halladay, a principal with the global consultancy, has created an online library of articles, presentations and background concerning the new lease accounting rules. It includes a summary of the exposure draft jointly crafted by the U.S. and international accounting boards and issued Aug. 18.
In a letter to software providers earlier this month, Halladay said: “...the operational burden faced by lessors is more significant than many realized. For example, under the Performance Obligation Approach included in the new rules, the Performance Obligation (a new concept and liability) must be linked to the leased asset and receivable.”
Halladay said in an interview with World Leasing News that his consultancy will respond to the exposure draft and that this is something he encourages individual companies to do as well. He also suggests that this is a good time for leasing executives to get closer to their customers.
“...off-balance sheet benefits are not the primary motivation for leasing,” he added. He suggested that many lessees are opting to lease for cash flow reasons, a technology hedge, or for flexible terms and expertise in equipment selection and service.
The online library at http://www.thealtagroup.com/articles/articles-presentations-on-accounting-rules/articles-presentations is tailored for equipment leasing companies to provide some guidance on adjusting business. Featured are Halladay’s articles which have appeared in numerous equipment leasing and asset finance trade publications. The Alta consultant is currently working on a research paper about the impact of the accounting rules which will be published by the Equipment Leasing and Finance Foundation. He also will speak at the industry association’s upcoming conference on accounting next month and its national convention in October.
The Alta Group will distribute its own newsletter, Decision Points Brief, next month with a lead story on this subject.
The Alta Group’s new division was launched in May to create value for its clients by helping them understand the new lease accounting rules. The consultancy is guiding clients on the design of customer strategies, appropriate business processes, and methods for maximizing revenue recognition, and making needed system changes.
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ABOUT THE ALTA GROUP
The Alta Group, LLC, is a global consultancy serving equipment leasing and finance companies, investment professionals, manufacturers, banks, and government organizations. Founded in 1992, The Alta Group supports clients in North America; Latin America; Western, Central and Eastern Europe; Australia; and China. For more information, please visit http://www.thealtagroup.com
