Ten Steps to Collect Your Lease Accounting Data
The Industry’s Most Comprehensive Guide to Collecting Data for the New Lease Accounting Standards
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Answers to Your Toughest Questions:
- What Data is Required for the New Standards
- Where to Look for Your Lease Accounting Data
- What Methods to Use for Abstracting Lease Data from Contracts
- How to Clean Up Data for Accounting Treatment
Guidance on a wide variety of lease types and scenarios:
- Asset Types – Real Estate, IT, Fleet, Material Handling, and Other Equipment Leases
- Systems – ERP, Procurement, and IT Asset and Fleet Management Systems
- Lessors – Real Estate Landlords, Commercial Banks, Vendor Captives, and Independent Lessors
The Biggest Obstacle to Complying with the New FASB and IFRS Standards
The new lease accounting standards are here. For most companies the full scope of the challenges will not be understood for some time. However, one thing that almost every financial executive agrees upon is that the implementation of these new standards will be time consuming and resource intensive. The biggest obstacle will likely be collecting all the lease accounting data about your real estate and equipment leases. Most companies have been tracking leases at a schedule level in spreadsheets. Going forward, records will need to be kept at an asset level in an auditable, controlled database.
Although the lease accounting data collection process may sound like a clerical task, it can be quite complex. There are many different types of lease structures each of which might have variable pricing models, complex buyout options, and residual value calculations. International leases will need to be translated from foreign languages and researched as there may be different terms necessary to comply with local regulations.