Chicago, IL., June 18, 2018 — LeaseAccelerator, the pioneer in the Enterprise Lease Accounting software market, will discuss implementation and system solution selection for the new lease standards at the upcoming FEI 2018 Accounting Change for Financial Leaders Conference on June 19th in Chicago, IL.
Reston, Va., June 15, 2018 — LeaseAccelerator, the pioneer in the Enterprise Lease Accounting software market, will share guidance on how companies can comply with ASC 842 at the upcoming IMA ACE 2018 Conference on June 16th in Indianapolis, IN.
RESTON, Va., June 12, 2018 — LeaseAccelerator, the pioneer in the Enterprise Lease Accounting software market, announced today that national consulting and talent solutions firm, Vaco, has joined its global alliance program. The new alliance will help companies accelerate adoption of the new lease accounting standards, ASC 842 and IFRS 16. The new standards will have material impacts to corporate balance sheets and will require significant changes to systems, processes, policies and controls.
RESTON, Va. – May 27, 2018 – LeaseAccelerator, thepioneer in the Enterprise Lease Accounting software market, was named the winner of a Bronze Stevie® Award in the Company of the Year, Computer Software category at The 16thAnnual American Business Awards®.
RESTON, Va.– May 9, 2018 – LeaseAccelerator, the leading provider of Enterprise Lease Accounting software, announced today that RSM US LLP (“RSM”)has joined its global partner program. RSM is the nation’s largest provider of audit, tax and consulting services focused on the middle market with more than 9,000 professionals in 90 cities across the US. To support the recent wave of major accounting changes being introduced by the standards boards, RSM has developed a lease accounting practiceto assist clients with assessment, strategy, implementation and adoption management for ASC 842 projects.
RESTON, Va. – April 30, 2018 – LeaseAccelerator, the pioneer of the Enterprise Lease Accounting software category, announced today that it will co-host a webinar with Genpact and the analyst firm, HfS Research, on the new lease accounting standards. Panelists from the firms will offer recommendations for how companies can comply with IFRS 16 and ASC 842 by year-end.
RESTON, Va.– April 25, 2018 – LeaseAccelerator, the pioneer in the Enterprise Lease Accounting software market, announced today that 10 new SAP-centric companies have recently selected its SaaS application to comply with the new lease accounting standards. Currently used by Dow Chemical, Lyondellbasell Industries, Northrop Grumman and Owens Corning, LeaseAccelerator supports real estate and equipment leases in a single subledger that can be integrated to one or many instances of SAP ERP.
LAS VEGAS, Nev. – April 20, 2018 – LeaseAccelerator will be co-presenting with Genpact at the Oracle Application User Group (OAUG) COLLABORATE 18 Conference in Las Vegas on April 23rdto discuss best practices for ASC 842 compliance. With less than nine months remaining until the initial deadlines for the new lease accounting standards (ASC 842 and IFRS 16), Oracle-centric companies will find implementing an ASC 842 project to be one of the top finance initiatives of 2018.
RESTON, Va. – April 17, 2018 – LeaseAccelerator, the pioneer of the Enterprise Lease Accounting software category, announced today the release of the first SAB 74 Disclosure Analysis for Lease Accounting report, an assessment of recent SEC filings related to the adoption of ASC 842. The report includes comments issued by the 100 US companies with the largest dollar value of leasing obligations.
Updated September 2018
As the deadlines for ASC 842 get closer, companies will be required to issue SAB 74 Disclosures about the effects that the new standards might have. In an effort to assist the industry with accelerated adoption of ASC 842, LeaseAccelerator compiled a Lease Accounting SAB 74 Disclosures Analysis report with examples from 100 SEC registrants over the past 15 months. The study focuses on the top 100 US public companies as ranked by the total leasing obligations tabularized in the footnotes of annual filings. The source of the data was 10-Q and 10-K filings submitted between October 1st, 2017 and September 7th, 2018 .
Impacts to Financial Statements
- Balance Sheet Impact
- Income Statement Impact
- Cash Flow Statement Impact
- Elections of Practical Expedients
Progress on ASC 842 Implementation
- Lease Accounting Project Teams
- Financial Policies and Controls
- Lease Accounting Software
- Business Processes
With the revenue recognition standard (ASC 606) a number of companies including Alphabet, Microsoft, General Dynamics, Ford, and Raytheon were early adopters. Only two of the 100 companies analyzed, Microsoft and Target, adopted the standards early. No other companies stated their intention to early adopt.
A new optional transition method was approved in July 2018. Some companies who filed after that date referenced the new transition method in their disclosures, either stating their intention to elect the new method or stating that they were still evaluating whether or not they chose to elect the new method. As of the time of this study, 14% of the companies stated they would choose the new method, while 9% stated they were undecided.
Material Impacts to Balance Sheets
As expected, the new right-of-use assets and liabilities being added to balance sheets is expected to be the most material impact to financial statements. 83% of the Top 100 reported that there will be a material impact resulting from the transfer of most right-of-use assets and liabilities on to corporate balance sheets. Another 14% are still analyzing the potential impacts of the new standard.
To learn more about the findings, download the Lease Accounting SAB 74 Disclosures report.
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