Download this guide to identify the key lessons learned public companies discovered during the implementation of their lease accounting projects – so you can avoid the same mistakes.
A Financial Controller’s Guide to the First 90 Days of the AASB 16 Project
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Help Navigate the First 90 Days
- Understand the Biggest Technical Accounting Challenges
- Assess your Existing Systems, Processes, and Controls
- Take an Enterprise-Wide Census of Your Leases
Answer the Key Questions
- Who to Include on the Project Team
- How Long Implementation Will Take
- How to Budget for the Project
The First 90 Days
The end goal of the new lease accounting standards is to provide investors with more transparency around your leasing contracts. Operating leases, which have historically been off- balance sheet will now be treated as assets and liabilities on the balance sheet under AASB and IFRS 16. Operating leases represent the majority of leases for 93% of companies.
The challenges with these new standards should not be underestimated. In fact, some have called the new leasing standards the “biggest accounting change ever.” The International Accounting Standards Board estimates that over $2 Trillion in liabilities will move onto corporate balance sheets during this transition.
Learn What to Look for in a Lease Accounting and Administration Solution
The guide outlines key features to consider, including:
Global Lease Accounting Engine and Lease Accounting Subledger
Compliance with AASB 16 and IFRS 16 Financial Disclosures
Responsibility and Management Accounting
Equipment Competitive Sourcing and End-of-Term Management
Real Estate Lease Administration and Spend Analysis
Lease Data Abstraction Technology
Cloud and Behind-the-Firewall Deployment Options
General Ledger Integration and APIs
About the LeaseAccelerator Solution
The LeaseAccelerator Enterprise Lease Accounting solution was designed to work with the IFRS 16 and AASB 16 lease accounting standards standards as well as the ASC 842 standard in the United States. The lease accounting software fully supports equipment and real estate lease types, as well as embedded leases. A few of the other features of the LeaseAccelerator lease accounting software are:
Global Lease Accounting Engine: Captures all data about each lease, from economic life and depreciation terms to end-of-term options and base and variable rents.
Asset-Level Subledger: Asset-level lease accounting is required under the new lease accounting standards.
Journal Entries and Disclosures: Quickly generates everything you need for your quarterly and annual reports.
Reconciliation and Roll-Forward Reporting: These control reports automatically compare data to find discrepancies before your auditor does.
Integration Capability: Integrate LeaseAccelerator with ERP systems, including SAP and Oracle, as well as real estate administration, asset management, and accounts payable applications.
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To separate or not separate – That is the question creating anxiety for many technical accountants around the world as they implement the new leasing standards. Understand the pros and cons of taking this important policy election in our short eBook.
What items will external auditors be focused on after the implementation deadline for lease accounting? There has been little guidance published by the big four firms yet. However, one topic that is raised by auditors at almost every lease accounting conference is the importance of completeness.
Looking for cost savings in your corporate real estate portfolio? Read this guide to learn the ten strategies for reducing costs through better real estate lease administration. Topics include uncollected subtenant rent, overdue security deposits, forfeited tenant allowances, and missed renewal dates.
This guide reviews the five keys to success with your lease accounting project. Planning for these steps at the start will increase your project speed and reduce your chances of having to repeat a project phase later.
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By applying one or more of these techniques, you may be able to shave weeks, if not months, from your timeline.
The Evaluation Guide includes a comprehensive checklist of features for real estate and equipment lease accounting and administration.
Few companies have given significant consideration to the processes required for maintaining lease accounting data on Day Two and beyond. How will you ensure that your lease accounting system is kept current with the most accurate, complete, and up-to-date information about leases?
Success with your ASC 842/IFRS 16 project will require you to keep your leasing information accurate, complete, and up-to-date. Learn which systems you will need to source data from to identify new leases and track changes to existing contracts. Understand which downstream systems need lease accounting information, such as journal entries and depreciation expenses.
With the deadlines for the new lease accounting standards approaching quickly, many companies are asking how software can help automate the tasks required for the transition period. US GAAP filers adopting ASC 842 will be required to provide three years of comparative reporting.