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Critical Lease Accounting Software Considerations

Posted by Amber Bigler Newman

9/21/17 1:19 PM

Many organizations are getting serious about selecting a lease management technology platform that can support the new FASB and IASB lease accounting mandates. If you are like most people, you probably don't choose a lease accounting solution every day, so we thought it would be helpful to offer some of the most important things to keep in mind when considering your options.

1. Find a vendor that is actively implementing customers of your size and in your industry.

We suggest asking any vendor you consider whether they are actively implementing clients under the new standards today. Many vendors are claiming that they have a solution, but what they really mean is that they will have a solution by the deadline date. Ask each solution provider to tell you about their customers who are actively engaged in implementation and insist on a demonstration.

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Topics: FASB, Lease Accounting

Lease Accounting Software Checklist – 9 Critical Questions

Posted by Amber Bigler Newman

8/29/17 7:30 PM

Most people don’t evaluate lease accounting software every day. In fact, many people who have never thought much about lease accounting technology are being compelled by the new FASB and IFRS mandates to start looking for a solution that can get them to compliance on time. To help, we’ve compiled a list of the most important questions to ask any vendor you consider. You can find one with all the right answers.

1- Has the solution been validated by CPA’s and financial reporting experts?

As one major retail client of ours said, “I can’t afford to get this even 1% wrong.” While the screens that you see in a lease accounting solution aren’t terribly complex (at least they shouldn’t be) the calculations that happen behind the scenes are extremely complicated. That’s why you want to insist on a solution with vetted calculations. Better yet, if the system is recommended by some of the big accounting firms.

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Topics: Real Estate Accounting, FASB, Lease Accounting

FASB Compliance Must Do: Find Your Leases (Here’s Where to Look)

Posted by Amber Bigler Newman

8/25/17 7:08 PM

One of the biggest obstacles that most companies face as they prepare to meet the new FASB 842 and IFRS 16 lease accounting mandates is that most don’t have a centralized repository for all leasing information. Many have real estate leases in some type of system, but equipment leases and other contracts are a different story. The number one answer we get when we ask clients and prospects how many equipment leases they have is, “I have no idea.”

So, if you are in that boat, you are not alone. We can’t tell you exactly where your leases are (unless you request our lease audit service), but here are a few places you might want to look.

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Topics: FASB

15 Things You'll Need to Know About Every Lease for New FASB Standards

Posted by Amber Bigler Newman

8/16/17 6:31 PM

fasb lease accounting standardsThe deadline to meet the new FASB / IFRS Lease accounting standards is approaching quickly.  Companies that don’t begin preparing now will find themselves in the position of scrambling to avoid damaging penalties and likely use up a great deal of time and money. This can be avoided, but the window of opportunity to be proactive is getting smaller.

There's no way around it, complying with the new standards is going to be challenging for most companies. One thing that you can start doing right away to smooth the implementation of the new standards is gather the data you'll need. Capitalizing  a lease under the new FASB guidelines will require the following 15 pieces of information about each lease longer than 12 months, including existing leases:

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Topics: FASB

New Lease Accounting Standard (FASB) FAQs

Posted by Amber Bigler Newman

8/2/17 8:00 AM

Since 2010, the Financial Accounting Standards Board (FASB) has been considering significant changes to the way leased real estate and other assets are reported by public companies. The new standards were announced last year and will go into effect for pivate companies and public companies with private debt on December 15, 2018 and for public companies on December 15, 2019 It is important that business leaders think about what this change will mean for them and how they should prepare.

What will change?

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Topics: Real Estate Accounting, Lease Administration, FASB

New FASB and IFRS Lease Accounting Standards: Technology Options

Posted by Amber Bigler Newman

7/27/17 5:59 PM

Finance and real estate executives are beginning to grapple with the enormous challenge of complying with the new FASB and IFRS lease accounting standards, FASB ACS 842 and IFRS 16 respectively. One of the first steps to achieving compliance by the January 2019 deadline for public companies, is selecting technology to support the effort. There are two distinct paths that organizations may consider.

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Topics: FASB