Lease accounting for the financial services industry will change under the new standards. The financial services industry tends to lease a variety of assets that may include bank branch buildings, office space, and outsourced technology operations.
The new leasing standards will require financial services and insurance companies to update their accounting policies based on the new principles. In some cases, extensive analysis may be required to arrive at judgments on how to apply the standards to certain lease types.
1. Does outsourced data storage qualify as a lease? Consider whether or not the data centers are customized to fit specific company needs.
2. What arrangements might qualify as on-balance sheet leases under the new accounting standards? Consider not only real estate leases like office buildings, but also equipment leases.
3. How are lease and non-lease components separated in a contract? For example, consider how a requirement for office space maintenance could be considered non-lease, but the office space itself might be considered a lease.