AI Set to Streamline New Lease Accounting Standards, But Human Oversight Still Critical
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ASC 842 is a new lease accounting standard that requires companies to recognize leases on balance sheets. AI can help efficiently convert thousands of leases into right-of-use assets.
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The global AI in accounting market is projected to reach $14 billion by 2027. AI can enhance compliance and accuracy in implementing ASC 842.
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AI can assist in lease identification, invoice reconciliation, interpreting terms and conditions, and creating schedules.
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Human oversight of AI-generated outputs is crucial to ensure compliance and accuracy.
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Common missteps with AI include over-reliance without oversight, poor data quality, and neglecting training. AI updates are essential.