A new textbook on lease accounting by industry authority Shawn Halladay, managing director of the professional development practice at The Alta Group, offers guidance to both US and international lessors and lessees.
The book, called Accounting for Leases: Embracing the New Paradigm, covers many of the common elements between ASC 842, the new US lease accounting standard, and IFRS 16, the new lease accounting standard for countries outside the US.
Although IFRS 16 recognises one lease model for lessees and ASC 842 recognizes two (both finance and operating leases), there is significant overlap between the two standards.
Halladay (pictured) said: “My book examines numerous lease accounting considerations under the new rules, including partial off-balance sheet financing, sale-leasebacks and changes to how US lessors account for their leases.
“It also has particular applicability in emerging markets, because it provides up-to-date guidance as companies establish accounting policies and procedures.”
He said finance executives worldwide, along with banking and legal executives, and international leasing consultancies, will find a wealth of lease accounting information in the 400-page book.
It also includes a guide for marketing under the new rules that lessors can use to assist their clients.
Halladay has more than 30 years' experience as a lessor, trainer, consultant and auditor to Alta’s clients.
Based in Salt Lake City, US, he has served lessors throughout North America, South America, Asia, the Middle East and Europe, providing training in all aspects of equipment leasing.
His consulting expertise includes vendor finance, accounting and reporting best practices, competitive analysis, strategic planning, litigation support, and accounting and quantitative analysis.
In addition to the textbook, he has authored or co-authored eight books on equipment leasing, including A Guide to Equipment Leasing, An Introduction to Leasing and The Handbook of Equipment Leasing.
Alta has been involved in another textbook, called Leasing - The Creative Financing Alternative, by Sudhir P. Amembal, a detailed review of lease fundamentals that serves as a reference for lessors.
Two chapters were written by Halladay and Diane Croessmann, an Alta director.
Halladay’s chapter covers navigating the new lease accounting standard, while Croessmann’s chapter relates to managed services, the fast-growing pay-for-use trend impacting IT and healthcare equipment, as well as other equipment types.