Lease data is the heart of FSB ASC 842 compliance

Data is going to be your key to FASB ASC 842 compliance. And it’s proven to be tougher than most companies expected. The new rule will require you to abstract as many as 55 data elements from leases in order to determine the lease status and meet compliance requirements. Because lease data is at the heart of FASB ASC 842 compliance, we created this checklist and worksheet to help you. It’s a comprehensive checklist of the data you’ll need to collect in order to correctly classify and report on each lease.

AMTdirect's software solution and RSM's middle market insights provide a seamless path to compliance with new lease accounting, reporting requirements.

The new FASB ASC 842 and IFRS 16 lease accounting mandates constitute a significant challenge for mid-sized organizations. They require a level of scrutiny on real estate and equipment leases that has never been seen before.   While most retailers already have all of the data necessary for compliance in a digital system, most other organizations may be starting from scratch when it comes to lease compliance.

Excel is one of the most popular software applications on the planet for good reasons. It’s extremely flexible. It’s cheap. Pretty much everyone knows how to use it to one extent or another, and it’s a great file format for uploading or downloading data from all sorts of other applications. What’s not to love?

In fact, in theory, you could use Excel for managing your entire business. It could be your CRM, your HR system, your inventory control solution, or your POS. It probably isn’t though. Why? Because these tasks are so important and so specialized that it makes sense to use applications that are designed for exactly that purpose. Doing so reduces risk, ensures consistency, and lets you take advantage of custom features that uniquely fit the task at hand.

Since 2007, the Angels and Sparrows Soup Kitchen has been working to fight hunger in Huntersville and adjacent towns of Cornelius (our headquarters) and Davidson as well as in the North Mecklenburg County unincorporated areas. AMTdirect has been a long time supporter of the organization, making space for our employees to volunteer to help the organization provide a nourishing lunch, Monday through Friday 11am-1pm, year-round to anyone who needs help.

This is a guest post by Nicole Hitner. Nicole is a Content Strategist at Exago, Inc., producers of embedded business intelligence for software companies. She manages the company’s content marketing, writes for their blog, and hosts their podcast, Data Talks.  We're grateful for her contribution.