You work in the accounting policy group for a consumer

IT or not to IT?Issue: You work in the accounting policy group for a consumer products company. The company has set aside fundsin its budget for a complete overhaul of its computer information systems this year. The CFO is aware that the FASBand IASB are making steady progress on a project to overhaul lease accounting which would put most (if not all)leases on balance sheet and has asked your team to work with IT to identify needed systems changes based on theFASB’s proposal. The CFO suggested that the company should adopt the FASB’s proposals (and begin accountingfor leases under the proposed model) once the updated computer systems are in place at the end of this year.You have been closely monitoring the FASB Board’s recent meetings and proposed standard so you have agood sense as to what the Boards want companies’ accounting to look like. Your company has given you the greenlight to early-adopt the changes being contemplated by the FASB and to incorporate these proposals into the newIT system. But the question is—is it the right thing for your company to do to adopt this guidance so soon? Basedon your close monitoring of the FASB’s recent meetings you know this is the way the boards believe leases shouldbe accounted for.Required: Draft a half-page to one-page response to the CFO’s suggestion.