Posted on 08/16/2016
By Cameron Nokes, Senior Product Manager - Retail
In our first blog, we gave you a little teaser of how we’re ready for the upcoming FASB changes. This week we’re going to go a bit more in-depth with some of the FASB-related features of our upcoming Accruent 8.6 release.
With the new Accruent release, we have integrated deep functional support for users preparing to transfer their leases to adhere to the new FASB standards. The new functionality will allow for a simplified and accurate transition, and let businesses prepare and edit their lease content before fully adopting the new standards.
A more detailed Product Briefing will be published in late August, but in the meantime, here is a sample of the included product features:
You can determine whether or not a lease is a Finance or Operating lease by creating a Classification Test. You’ll be prompted with a list of questions to help determine which kind of lease you are working with. Key concepts like Property Title transfer (to Lessee) by the end of the Lease Term, and percentage of economic life of the lease property for the non-cancellable lease term. The new classification test is principles based, which allow for organizations to apply their own business-specific rules for classifying the Right-of-Use Asset.
The Details Entry page allows you to capture the information to initially populate the lease accounting schedules for an operating or finance lease. You can make modifications such as Type of Lease, Schedule Start/End Date, Initial Direct Costs, and Probable Owed Residual Value, just to name a few.
Modifications can be added to leases for remeasurement under the new standards. The updates to the Accruent system will enable the user to add Additional Costs of Modification at or before Remeasurement Start, Interest Rate Adjustments, Probable Options, Changes in Asset, new Asset Descriptions, and Type of Lease Transaction changes. Other modifications that can be made include FASB Expense Type, Initial Direct Costs and Asset Impairment, among many others.
The most important aspect of a system for most customers is the ability to report against changes in real-time. Helping you keep track of these changes throughout the transition period is a key focus at Accruent. The types of reports included in the first FASB release are Operating and Finance Schedules, Topic 842 Classifications, FASB Audit Log, FASB Details and Modifications, Assets vs. Liability, and Accumulated Liability.
We know your organization’s preparedness surrounding the transition to the new FASB standards is extremely important and top of mind. Accruent wants to be your partner every step of the way, from the discovery process through the FASB transition period and beyond. Accruent is ready, are you?
Coming up next: Look for our 8.6 product briefing and webinar details soon. We’ll have another blog post in a couple of weeks! Subscribe to our blog page to keep up with the latest.