Itochu Offers $1.56 Billion to Privatize Dentsu Soken 
Pinterest Stock Falls as CFO Julia Brau Donnelly Resigns 
OpenAI AI Agent Swarm Behind Hugging Face Hack 
The Realist’s Case: Lukas Kerrebijn of RD Dubai on the Narrative Dubai’s Agents Won’t Question 
Salesforce Shares Surge as AI Demand Powers Q2 Earnings Beat 
Nvidia Pauses AI Cloud Financing Deals Amid Antitrust Concerns 
Yindjibarndi Appeals Fortescue Mining Compensation Ruling 
Google Changes EU Spam Policy Amid Antitrust Scrutiny 
Trump Administration Plans New Drug Pricing Deals With Biotech Firms 
Amazon Secures 200 MW Wind Power Deals in Sweden 
Honda, Nissan Eye Shared Vehicle Software Platform by 2029 
Shein Hong Kong IPO to Raise $1.7 Billion at $26.5 Billion Valuation 
BNP Paribas, KB Kookmin Eye $2 Billion Techcombank Stake 
Mercer International Stock Surges 45% on C$20 Million Canada Funding 
Trian Drops Wendy’s Take-Private Bid Plans, Shares Plunge 14% 
BofA Names ASML Top Semiconductor Equipment Pick on Growth, Valuation 
Add as a preferred source on Google
ATLANTA, April 04, 2018 -- While accounting departments are focusing on complying with the new lease standards (ASC 842/IFRS 16), tax departments also need to focus on the impacts of moving leases with terms greater than 12 months onto the balance sheet.
With a look back period beginning in 2017, it is anticipated that trillions of dollars of lease obligations are set to hit corporate balance sheets in 2019. While there are no changes in the way leases are treated for income tax purposes, deferred taxes will need to be recorded for all of these new assets that have no tax basis. Additionally, as leases are added to the balance sheet, thorough evaluation of each lease may lead to a change in classifying what was previously considered an operating lease to a capital lease for tax purposes. This may require a change in method of accounting, which would have an additional impact on corporate income taxes.
Even property tax may be impacted by the newest standards. While the payment of property tax is typically included as part of the lessor/lessee agreement, having a system in place to record these details will be critical for compliance and to ensure companies are not double paying. For example, paying property taxes pursuant to the lease agreement and again when the leased property is added to the balance sheet.
With proper planning and the right tools, companies can use this change as a catalyst for improvement. PowerPlan’s Income Tax Suite includes features that allow forecasting of all tax depreciation, gain/loss and deferred taxes. For more information on how PowerPlan can support lease and tax compliance, planning and forecasting, visit our website at www.powerplan.com.
About PowerPlan
PowerPlan software provides financial insight into how complex rules and regulations impact your organization – empowering you to make credible decisions that improve overall corporate performance. The integrated solution provides complete visibility starting with forecasting and monitoring to scenario planning and analytics while maintaining financial compliance. For more information, email [email protected] or visit www.powerplan.com.
For more information, contact:
Tiffany Smith
678-223-2711
[email protected]
