Posted on 12/01/2016
As the new FASB regulations roll out, it’s now more important than ever to make the right choice about which software to use to manage your leases. In this blog edition, we will explore some key aspects you should be thinking about (if you aren’t already).
The Knowledge You Need
As the old adage goes, “education is the key to success”. Your organization’s understanding of the new FASB guidelines and the implications to your business will help drive your success. Accruent’s FASB Readiness Guide is a one-stop shop for everything you need to know about FASB. You can check out blog posts and other resources to get yourself up to speed on the regulatory changes and what you need to do to keep up. Go through a readiness checklist, do your own cost/benefit analysis and start making a plan for how to tackle the new regulations.
Reduce the Impact
Lease accounting changes are part of a multi-year effort to align U.S. standards with global accounting standards while increasing the transparency of off-balance sheet obligations. For most organizations, the changes create a greater compliance burden and have a material change on corporate financial statements – potentially bringing billions of dollars onto corporate balance sheets, modifying financial ratios and impacting debt covenants.
As such, your business should be considering options to reduce the impact to your organization, and market-leading systems are a key tenant. Accruent has been actively monitoring the changes since they were initially proposed, and has incorporated them into our robust financial engine that manages core financial data for the generation, management and reporting of lease standards. Accruent’s Lease Administration product complies with the FASB/IASB changes to ensure customers receive the most up-to-date functionality like lease classification, remeasurements, and audit tracking, as well as reporting in parallel throughout the transition period. Having the ability to manage and report against both the new standard and old standard in parallel eases the burden on your organization.
What’s in a System?
Getting through the migration period, there are key elements that the system must address to ensure tracking and reporting is accurate, and that your CFO can sleep well at night.
In Accruent’s newest release, we have integrated deep functional support for users preparing to transfer their leases to adhere to the new FASB lease accounting standards. The new functionality will allow for a simplified and accurate transition, and help your business prepare and edit your lease content before fully adopting the new standards. A few features include:
The Right Partner
Find the best partner for your business. We know your organization’s preparedness surrounding the transition to the new FASB lease accounting 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?