White Papers

Handbook | New IASB IFRS 16 Lease Accounting Standard

By | White Papers

New Lease Accounting Standard Handbook

How to Comply with the IASB IFRS 16 Lease Accounting Changes While Also Driving Savings

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Get the IFRS 16 Handbook

Download Handbook to Learn:

  • Summary of the new IASB IFRS 16 rules
  • The Data and Documents You’ll Need to Collect
  • Required Lease Accounting Software Changes
  • Real World Accounting Examples

Overview of IFRS 16

The first effective dates for the new international lease accounting standard, IFRS 16, were in January 2019. The standard requires that all leases now be reported as finance leases unless the lease term is less than 12 months or the value of the lease is less than US$5000. The on-balance sheet requirement of the new standard is creating a huge implementation challenge for many companies. The challenge is exacerbated for companies with large equipment leasing portfolios because equipment leasing programs are typically decentralized, making it difficult to track down the data needed to comply with the new standards.

To comply with the new standard companies must:

  • Learn the technical accounting and make policy judgements
  • Collect lease accounting data and supporting documents
  • Implement lease accounting and administration software
Lease Accelerator Solution by role for Shared Services

To maintain compliance, companies must:

  • Develop policies and controls to ensure the company stays in compliance on day 2 of the new standards and beyond
  • Establish automated processes to reduce unnecessary risks from manual workarounds, as well as costs
  • Train all end users on the lease accounting and management software

To learn more about IFRS 16, the affects the standards will have on your business, how to staff and budget for the implementation project, and what to look for in lease accounting software, visit our lease accounting page.

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.

Article | LeaseAccelerator: Pioneering the New Category of Enterprise Lease Accounting

By | White Papers

LeaseAccelerator: Pioneering the New Category of Enterprise Lease Accounting

The new category of software is crucial for enterprise-wide compliance with ASC 842 and IFR 16.

By Sandeepa Majumdar

Published in February 2018

Published in CFO Tech Outlook

Read an Excerpt

Although the new leasing standards will come into effect in 2019, with leased assets scattered everywhere, organizations are left with very little time to analyze, validate, and accurately generate data and audit trails. While the scenario is growing complex, many organizations are still using traditional spreadsheets and homegrown systems to manage their lease portfolios, which result in billing errors and evergreen fees. What they require is a dynamic lease accounting application that can automate the business processes at the enterprise scale.

Enter LeaseAccelerator, a pure play lease accounting software provider that has it all covered. Having performed lease accounting and management for over a decade, LeaseAccelerator is the first of its kind cloud-based SaaS application that automates every step in the leasing lifecycle. It tracks all the assets under the new regulations and generates reliable leasing data, in no time, for financial disclosures. “We are on a mission to optimize lease accounting for enterprises. While other software vendors have recently jumped onto the bandwagon to offer lease accounting, our experience in R&D, customer support, and product strategy, developed over the years makes us the go-to solution provider,” notes Michael Keeler, CEO, LeaseAccelerator.

Learn More about the New Lease Accounting Standards

White Papers, Handbooks, and Research Studies

Leasing Guides

Expert Guide | Private Companies – How to Get Started

| Accounting, Featured, White Papers | No Comments
Learn how to identify implementation challenges, assess your existing processes, and take an enterprise wide census of your leases.

Expert Guide | Separating Lease and Non-Lease Components

| Accounting, Guides, Real Estate | No Comments
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…
Lease Accounting Audit Completeness eBook

Expert Guide | Lease Accounting Audit Completeness

| Accounting, Day Two, Guides | No Comments
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…
lease accounting progress report 2018

Research Study | Lease Accounting Progress Report 2018

By | White Papers

Two years have passed since the initial publication of the new ASC 842 Leases standard by FASB. In an effort to provide a quantitative progress report on the status of compliance efforts, LeaseAccelerator conducted a research study in late January 2018. Over 300 finance and accounting leaders were surveyed to understand progress in forming a project team, updating policies, collecting data, and selecting software.

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Lease Accounting Progress Report 2017

Lease Accounting Progress Report 2017

By | Research, White Papers

Are you ahead of schedule or behind with your ASC 842 lease accounting project? Benchmark yourself against your peers by reviewing our 2017 Progress Report, published on the one-year anniversary of FASB’s new leasing standard. Over 250 finance professionals provided their progress on key tasks such as resource staffing, budget approval, data collection, and software selection.

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