First, there should be a good presentation of the rules and the application of theme 842 to all parties involved. These include not only financial and accounting services, but also supply chain, procurement, operations and information technology. It is true that on-board leasing contracts are already everywhere and that ASC 842 is increasing the implementation of proper collection and billing. LaSalle Solutions facilitates the tracking process with LAMP, our cloud platform, which places all important information in one place and facilitates the tracking of end-of-life and renewal data. Correcting this accounting is probably a classification theme in the earnings and expense account. However, the incorporated leasing obligations, which are not included in the basic notes of DEAAP contracts, may be more significant. IFRS 15 can lead to a change in the accounting practices of investment managers Many changes to accounting rules and standards can radically change the way medical device companies report financial results in 2018 and beyond. Many companies may have difficulty adapting. Those who assess the impact of the new standards at an early stage are likely to be stronger to report financial results under the new standards and to advise operational leaders on the financial impact of potential new contracts. And those who understand that change is constant will be ready for the next wave of change, if it inevitably happens again. The new FASB revenue standard, which applies this year to state-owned enterprises, requires medical device companies to conduct a comprehensive review of their accounting and revenue valuation methods to determine if changes are needed. While the impact of the standard may vary depending on the nature of a medical device business`s sales contracts, many companies expect the date of revenue registration to change as a result of the removal of the „contingent cap“ concept. In particular, the awarding of the contract price to items delivered to a customer is older, in accordance with the revenue instructions, which does not depend on the delivery of future items.
The new revenue standard does not contain the same contingency ceiling. The FASB`s former leasing accounting standard, theme 840, also required an evaluation of these agreements, although some may say that this analysis was not considered as thoroughly as the fact that leasing debt is included in the balance sheet of subject 842.