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Recent SEC disclosures stress balance sheet impact of new lease accounting standards

By | Press Releases

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.

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Lease Accounting SAB 74 Disclosures Preview

Research Study | Lease Accounting SAB 74 Disclosures

By | Research, White Papers

Read SEC Filing Excerpts from the Top 100 US Companies

Updated September 2018

Lease Accounting SAB 74 Disclosures Preview

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

Key Findings

Early Adoption

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.

Transition Approach

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.

Also Check Out

How to Get Started with Your Lease Accounting Project

Understand the key risks and challenges of the lease accounting implementation, and how to budget and estimate the implementation time frame.

Lease Accounting Software Evaluation Guide

The guide includes a comprehensive checklist of features for real estate and equipment lease accounting and administration.

lessons learned lease accounting projects

Learn best practices and pitfalls to avoid from the lessons learned from real world lease accounting projects.

LeaseAccelerator chosen by ten new Oracle-centric companies for ASC 842 compliance

By | Press Releases

RESTON, Va. – April 12, 2018 – LeaseAccelerator, the pioneer of the Enterprise Lease Accounting software category, announced today that ten new Oracle-centric companies have selected its SaaS application to comply with the new ASC 842 and IFRS 16 standards. Currently used by Arconic, Alcoa, ATI, Cummins, Herbalife and Salesforce.com, LeaseAccelerator supports real estate, equipment and embedded leases in a single, global subledger. The subledger can be quickly, easily and securely integrated to one or many versions of Oracle’s ERP platforms, including Oracle E-Business Suite, PeopleSoft, JD Edwards and their new Fusion applications.

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LeaseAccelerator and RGP to host expert panel webinar on ASC 842

By | Press Releases

RESTON, Va. — March 20, 2018 – LeaseAccelerator, the pioneer in Enterprise Lease Accounting software, announced today that it will co-host a webinar with RGP on the new lease accounting standards. Experts from both firms will answer questions about the more challenging aspects of the ASC 842 standard including topics such as data collection, systems selection, financial controls, embedded leases, disclosure requirements, and transition accounting.

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LeaseAccelerator and Riveron Consulting to Present on New Lease Accounting Standards at ClearLaw Institute Webinar

By | Press Releases

RESTON, Va. — March 17, 2018 – LeaseAccelerator and Riveron Consulting announced today that they will be co-presenting on a ClearLaw Institute Webinar on the new lease accounting standards, ASC 842 and IFRS 16. The webinar will cover information about the new standards as well as what steps companies need take now to implement the standards before the first deadlines less than a year away.

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LeaseAccelerator and RSM to Host Expert Panel Webinar on ASC 842

By | Press Releases

RESTON, Va. — March 12, 2018 – LeaseAccelerator, the pioneer in Enterprise Lease Accounting software, announced today that it will co-host an expert panel with RSM US LLP (“RSM”) – the nation’s largest provider of audit, tax and consulting services focused on the middle market – on the new lease accounting standards. The panelists will cover topics concerning the implementation of the new standards, including the technical accounting changes and financial systems requirements. Hosted by Financial Executives Institute (FEI), participants will be able to earn one Continuing Professional Education credit.

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LeaseAccelerator Named to “Top 10 Accounting Solution Providers 2018” by CFO Tech Outlook

By | Press Releases

RESTON, Va, February 28, 2018 — LeaseAccelerator, the pioneer in Enterprise Lease Accounting software, announced today that it has been featured as 2018’s Top 10 Accounting Solution Providers in the latest edition of CFO Tech Outlook. The annual list of companies is selected by a panel of experts and members of the magazine’s editorial board based upon their innovativeness and advancement in providing accounting solutions.

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