I recently read an article that discussed many concerns regarding the regulatory changes looming over the lease accounting project. Many companies have been writing comment letters to the FASB and IASB boards regarding the proposed changes, and how these changes will affect day to day business.
Big changes are on the horizon, but the need to change lease accounting methodologies, raises another question—should companies delay new technology investments? Many companies are unsure about how to proceed with new purchases. Should they continue to rely on existing systems that adequately work for their companies today? Is it too risky to invest in new technology during this period of uncertainty?
What is the right answer? It seems that companies must weigh the cost of no action. Companies must factor the cost in continuing to support and maintain disparate back office systems while they wait for this initiative to be firmly resolved. If companies delay the decision to make investments to update and/or integrate these systems, companies will face increased IT costs and critical data may not be consolidated and shared throughout their company. Waiting could therefore hinder crucial decision-making, causing them to confront a different kind of risk altogether.
New changes and methodologies will continue, as companies continue to grow and adjust around them. If we all sit and wait for outcomes we will miss out on a lot of business opportunities. Great companies seem to know how to gracefully embrace either outcome of proposed changes…a chameleon of sorts…ready to adapt and carry on.