In 2018, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) announced the release of new accounting standards that defined how organizations must account for leases. The release of these leasing stan¬dards was far more than just an accounting change, it was an event that had profound implications on lease/buy decisions, internal process coordination and financial reporting.
Since being introduced in 2004, SAP Contract and Lease Management has gone through many updates and improvements. More recently it was expanded to cover IFRS16 as part of a co-innovation with SAP customers and accounting partners. Since these standards were released in 2018, all of us have learned a great deal about these requirements. The requirements of these standards are complex and can be resource intensive. I have never had a customer tell me the interpretation and compliance with these standards was easier than they thought it would be.