Accruent’s Lease Accounting Solution Achieves Another First; Earns Expanded FASB and IASB Verification
Independent third-party firm performs procedures on software for compliance with new lease accounting standards.
Austin, TX, May 9, 2018 – Accruent, the world’s leading provider of physical resource management solutions, has expanded the verification process of its lease accounting and administration solution with respect to the new FASB and IASB lease accounting standards with software testing conducted under several standards and procedures.
“Accruent is committed to maintaining the veracity and verification of the numbers in its lease accounting and administration solution,” said Ryan Siebel, Partner, Skoda Minotti. “It’s important for methodological calculations in software to be verified on a continuous basis.”
Skoda Minotti, an independent accounting firm, performed an expanded Agreed-Upon Procedures (AUP) engagement to further evaluate Accruent’s lease accounting and administration solution, the engagement included both the real estate and equipment leasing solutions. Skoda Minotti also performed SOC 1 and SOC 2 tests on the Accruent system under the SSAE-18 standards.
The procedures tested under the AUP engagement covered the design, inputs, calculations and reporting structures that Accruent has developed in its lease accounting and administration solution for ASC 842 and IFRS 16 compliance. The result is the recently completed 2018 AUP Report.
In the nine months since Accruent’s acquisition of Lucernex in August 2017, there has been an increased demand for our solution with the addition of 48 new customers looking to ensure FASB and IASB compliance. Accruent’s solution enables customers such as Brooks Brothers, Brunswick Corporation, Ferguson Enterprises, and Jamba Juice to adopt the new FASB/IASB lease accounting standards.
Recently, Michael Cohn in Accounting Today “SEC chief accountant warns against mischief in non-GAAP reporting”, noted that the Securities and Exchange Commission (SEC) is “keeping a close watch on how companies are dealing with the new accounting standards like revenue recognition and leasing.” The SEC’s Chief Accountant, Wesley Bricker, is confident these accounting changes will make financial reporting stronger.
“Unlike many competitors who simply perform an annual or one-time validation of their system, Accruent conducts SOC 1 and SOC 2 Reports every six months which is beyond the industry best practice,” said Greg Rivera, SVP, Retail, Accruent. “Furthermore, by providing a similar update to our AUP to validate calculations, Accruent’s customers get additional confirmation of our development inputs, processes and reports.”
By this time, public companies should have selected their solution and implementation partner and should be deep into the implementation process. If a public company has not reached this point, it is important to select an experienced and proven FASB/IASB solution and expert partner to ensure implementation and compliance by January 1, 2019.