Getting Your Business FASB Ready – Part Two
In part one of this blog, we discussed the challenges of FASB 842 and what you can do to meet the compliance standards.
Now, we'll discuss features of our lease administration software to show how we’re ready for the FASB 842 changes.
We have integrated deep functional support for customers preparing to transfer their leases to adhere to the FASB standards.
Our functionality allows for a simplified and accurate transition, and lets businesses prepare and edit their lease content before fully adopting the new standards. Here is a sample of the 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're working with, including 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.
Our classification test is principles-based, allowing you to apply your 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.
Accruent's solution enables the user to insert 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 track these changes throughout the transition period is a key focus at Accruent.
The types of reports available are Operating and Finance Schedules, Topic 842 Classifications, FASB Audit Log, FASB Details and Modifications, Assets vs. Liability, and Accumulated Liability.
Your preparedness for the transition to the new FASB standards is important to you and your organization. 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?
Are you ready for the new FASB/IASB reporting standards? Get help from the experts.