2016-03-14 17:41:16
AT LONG LAST, the Financial Accounting Standards Board released a new lease accounting standard on Feb. 25. The new standard will take effect for financial periods starting aft er Dec. 15, 2018 for public companies and aft er Dec. 15, 2019 for private companies. For companies with calendar year ends, the rules will take effect in 2019 for public companies and in 2020 for private companies.
Changes in accounting rules that would bring all or most leases on balance sheet have been under consideration by the accounting standard setters since 2006. ELFA has put forth a major effort and invested significant resources into the lease accounting project over the years to ensure a workable and sound standard to replace FAS 13.
Upon release of the new standard, ELFA President and CEO Ralph Petta released the following statement:
“We welcome the release of the new lease accounting standard from the Financial Accounting Standards Board. After many years of anticipating the new standard and attendant uncertainty in the marketplace, companies can now move forward and prepare to adopt it.
“The good news is that under the new lease accounting rules, businesses nationwide will continue to enjoy the benefits of engaging in the $1 trillion U.S. equipment finance industry, which promotes business expansion, job creation and U.S. economic growth.
“Although the new standard will change how leases are accounted for on corporate balance sheets, it will not impact the ability of companies to acquire productive equipment to grow their businesses. There are many reasons to lease equipment, and the primary reasons will remain intact under the new rules, from maintaining cash flow, to preserving capital, to obtaining flexible financial solutions, to avoiding obsolescence.
“We appreciate that the FASB was receptive to input from ELFA members in developing the new standard. The final rules improved significantly from where they began through the release of two Exposure Draft s— in 2010 and in 2013—that generated hundreds of comment letters and other feedback from stakeholders. The resulting two-lease model for lessee accounting is similar to U.S. GAAP today, as are the new rules, in general, for lessor accounting.
Download this white paper and other resources at www.elfaonline.org/Issues/Accounting/?fa=LAS.
“We thank the ELFA members, their customers and other stakeholders, including the U.S. Chamber of Commerce, who helped us to engage constructively with the standard setters over the past decade. Ever since the Securities and Exchange Commission called on the FASB to revamp lease accounting rules as part of an effort to harmonize accounting standards worldwide, our focus has been on ensuring a workable standard that accurately reflects the economics of the lease transaction and does not harm American businesses and the U.S. economy. Without this coordinated effort, we could be facing a far different outcome that could have imposed far more onerous compliance and financial burdens on lessees and lessors.
“Now we enter a new phase of planning for implementation.With the new standard scheduled to take effect in 2019 for public companies and a year later for private firms, now is the time to prepare. ELFA is organizing a number of activities and creating a number of new resources to help lessees and lessors meet the challenges of transitioning to the new rules. We are also developing a work group of experts to be a sounding board on implementation issues that may arise, so we can continue to be a resource to the FASB on the lease accounting rules going forward.”
For more information on the new standard, visit the ELFA website at www.elfaonline.org/Issues/Accounting/.
WITH THE RELEASE of the new lease accounting standard, ELFA has released a host of new resources to help lessors and lessees prepare for the new rules. These new resources underscore that the value of equipment leasing and finance will not change with issuance of the new standard. Please visit the ELFA website at www.elfaonline.org/Issues/ Accounting/ to access the following materials.
Tools for Lessors
Event Recordings
Listen to recordings of two recent ELFA events:
Upcoming Events
Don’t miss these opportunities to learn more about the new rules:
Lease and Finance Accountants Conference, Sept. 12–14 in Baltimore. Learn more and register at www.elfaonline. org/events/2016/LAC.
ELFA Annual Convention, Oct. 23–25 in Palm Desert, Calif. Learn more at www.elfaonline.org/AC.
Tools for Lessees Access educational resources to share with your customers on ELFA’s Equipment Finance Advantage end-user website at www.equipmentfinanceadvantage.org/newLAR.cfm:
Guest Lecture Program Grows
JEFF ELLIOTT of Huntington Asset Finance presented the Guest Lecture Program at Miami University in February. A growing number of members are taking the program on the road to increase awareness of equipment leasing and finance and attract new talent to the industry. Learn how you can get involved at www.elfaonline.org/GLP.
THE EQUIPMENT FINANCE HALL OF FAME annually recognizes individuals who have made unique, significant or lasting contributions to the industry and/or the association throughout their careers. Learn about the 2015 inductees and the 2016 nomination criteria and deadlines and access the online nomination form at www.elfaonline.org/hof. The deadline to nominate someone for the 2016 Class of the Equipment Finance Hall of Fame is April 1. Nominations will only be accepted via online submission. Please contact Julie Benson, VP of Membership Marketing, at jbenson@ elfaonline.org with questions.
SPRING is ELFA's busiest time for conferences. Here's a small sample of what's ahead. See a full listing at www.elfaonline.org/Events/.
Under the leadership of Chair Judy VanOsdel of TCF Equipment Finance, the Legal Committee met at ELFA headquarters in January to plan a spectacular program for the 2016 Legal Forum, May 1–3 in San Francisco.
Three One-Day Executive Meetings on April 19 in Chicago
ARE YOU a bank, independent or captive or vendor finance executive? Join the conversation at the April 19 best practices roundtable discussions. The Bank, Independent and Captive and Vendor Finance Best Practices Roundtables are designed to get groups of like-minded executives together to discuss trends affecting particular business entities, market segments or areas of responsibility. Open only to senior executives from ELFA member companies, these meetings are intentionally kept small to encourage interaction and sharing of information. As an added convenience, all roundtables will be held at the Swissôtel in Chicago immediately preceding the ELFA National Funding Conference, which is scheduled for 19-21. Please contact Alexa Carnibella at acarnibella@elfaonline.org to receive more information about any of these events.
Emerging Talent Invited to Chicago Networking Event
ELFA BELIEVES that helping emerging talent develop both their business knowledge and networks early in their careers can be enormously beneficial not only to them, but also to your company. We invite senior leaders of ELFA member companies to send two to three of your emerging talent to the Emerging Talent Regional Networking Event on Wednesday, April 20, from 6pm-9pm at the Swissôtel in Chicago. A panel of executives will discuss their careers and lessons learned, followed by a Q&A session. The panel will be followed by a networking reception. Panelists will include: Martha Ahlers, Vice President - Chief Operating Officer, United Leasing, Inc.; Bill Phelan, President, PayNet, Inc.; and Jud Snyder, President, BMO Harris Equipment Finance Company. This event is sponsored by BMO Harris Equipment Finance Company, PayNet, Inc. and LeaseTeam.
DID YOU KNOW that members may submit press releases to the ELFA Website? When you post your news, it will also be picked up in QuickBrief, ELFA’s weekly newsletter distributed to approximately 13,000 equipment finance professionals. Submit your press releases online at www.elfaonline.org/news/add. Please contact Amy Vogt at avogt@elfaonline.org with questions.
YOU’RE NOT ALWAYS ABLE to hire employees who can hit the ground running with a firm foundation in the fundamentals of the leasing and finance industry. That’s why ELFA has been delivering the basics for more than 20 years to thousands of individuals through its workshop Principles of Equipment Leasing and Finance. Three workshops are scheduled for 2016: April 19–21 in Chicago, June 14–16 in Philadelphia and Sept. 12–14 in Los Angeles. To review the workshop agenda in greater detail and to register, visit www.elfaonline.org/Events/ELFW/?fa=POL.
Eight Ideas to Maximize Your ELFA Membership
If your company is an ELFA member, you may create a member profile from the ELFA website and gain access to valuable, members-only resources.
Participate in the Survey of Equipment Finance Activity and receive a free copy.
Post a press release to the ELFA website, which is also included in the ELFA QuickBrief weekly e-newsletter.
Subscribe to the members-only email discussion groups LeaseTalk, AcctgTalk, LegalTalk and TaxTalk to stay connected and exchange information with your peers.
Increase the visibility of your company by updating your company logo and description as well as other information in the ELFA member directory.
Help drive the association’s mission and volunteer on an ELFA committee.
Upload the ELFA Member logo to your company website and show your support of the industry and the association.
Network with your peers and share best practices at ELFA members-only events, including Capitol Connections, May 18–19.
If you have any questions regarding the benefits of ELFA membership, please contact the Membership Department at membership@elfaonline.org.
We Bring the Training to You
HOSTING A WORKSHOP at your own facility gives you the flexibility and convenience to address specific learning needs of your employees, establish collective knowledge and a shared skill-set and achieve even your most challenging business goals. Both the Principles of Equipment Leasing and Finance and Beyond the Basics can be delivered on-site and tailored to your organization’s needs. If you would like to schedule in-house training, please contact Alexa Carnibella at acarnibella@elfaonline.org.
Find New Opportunities in the ELFA Career Center
THIS HIRING SEASON, turn to the ELFA Career Center to meet your employment goals. If you’re a job seeker, search and apply for jobs in your field and enjoy free and confidential resume posting. If you’re an employer, post and track job announcements and search our resume database. Learn more at http://careers.Elfaonline.org. Questions? Call 1-888-491-8833 x1814 or email avogt@elfaonline.org.
HOW CAN YOU SHARE your excitement about ELFA events and engage with other industry professionals? Tweet about the events before, during and after you attend! Your tweets will help to raise the visibility of the events and increase your engagement. Especially if you or someone at your organization is attending, speaking or exhibiting, we encourage you to get the word out!
LEARN MORE and see event hashtags and sample tweets at www.elfaonline.org/events/?fa=tweet.
NEW YEAR – SAVE BIG!
50% Member Discount on Fundamentals Course
LEARNING has never been easier or more affordable! Sign up now for Fundamentals of Equipment Leasing and Finance and receive half-off your registration fees. Go to www.elfaonline.org/ Events/eLearning/. To receive the discount on the Fundamentals course, enter the discount code: ELFAFUNCOURSE.
You must be an ELFA member to receive the 50% discount. For questions, contact Alexa Carnibella, acarnibella@elfaonline.org or 202/238-3416.
Congressional Meeting
(L-R): Tamarack Consulting’s Kristian Dolan, his son George and Tamarack President Dan Nelson attended an event with Rep. Erik Paulsen (center) in February. If you are interested in hosting a meeting with an elected official in your district, please contact ELFA Director of Government Relations Richard Shanahan at rshanahan@elfaonline.org.
©Equipment Leasing and Finance Association. View All Articles.
ELFA News
https://www.mydigitalpublication.com/article/ELFA+News/2425112/293643/article.html