Financial analysts typically classify real estate as a fixed cost. Strictly speaking, that’s correct, but looking at it this way leads many organizations to overlook opportunities to more carefully manage their real estate and other occupancy expenses. The changes in lease accounting that are going into effect have caused some organizations to reexamine their leasing policies and how they organize their lease accounting processes. They should take an even broader approach and consider ways to improve how they manage those leases.
Topics: Office of Finance, Continuous Planning, Financial Performance Management, Operations & Supply Chain, ERP and Continuous Accounting, Accounting, Lease Accounting, ASC842, IFRS16