Our client—a large international utility company, acting to accelerate the transition to a carbon-neutral world for a positive impact on people and planet – made an urgent call to us two days before Christmas. They were facing a fast-approaching financial reporting deadline over the Christmas holidays that required unique technical accounting expertise.
When it comes to the new lease accounting standard, across all industries, embedded leases have proven to be complex. EXAMPLE: Consider a standard product supply agreement. This type of contract might not seem like it contains a lease, but it may include an embedded lease if the purchaser has control over most of the services output.
If you’re part of an acquisition team, your first task will be managing the transition from an independent company to one that’s now part of the larger organization. As the leader of this effort, you have quite a bit on your plate, and it’s essential to handle it all in the right way to ensure the success of your transition efforts.