Retailer prepares for FASB lease accounting changes with latest upgrade.
Austin, Texas, July 27, 2017 – Accruent, the world’s leading provider of software and services that enable organizations to shape, drive, manage and control their physical assets, today announced that Aero OpCo LLC (“Aéropostale”) has selected Accruent’s lease administration software as it prepares for changes to the lease accounting standards from the Financial Accounting Standards Board (FASB).
In 2016, FASB announced the new accounting standard, ASC 842, that requires non-governmental companies and organizations to include lease obligations on their balance sheets. For lessees, the recognition of lease-related assets and liabilities, as well as changes to the timing of lease expense recognition, could have significant financial reporting and business implications.
“We need to take into account lease terms and options, upcoming lease renewals and location-specific criteria to name just a few factors,” said Ilir Dika, Director of Lease Auditing, Aéropostale. “Using Accruent’s lease administration software will allow us to manage our leases from start to finish, while transitioning to compliance with the FASB 842 lease accounting changes.”
As a long-time customer, Aéropostale continues to gain visibility into negotiated clauses, key dates and lease trends, ensuring lease compliance and controlling costs for over 500 locations. With this latest upgrade, Aéropostale will have the ability to transition to the new accounting standards, report on both operating and finance lease obligations, and forecast for future assets and liabilities.
Accruent enables its customers to make needed lease reporting changes in real time by actively monitoring the changes to the lease accounting standards and incorporating them into its lease administration software. The solution manages core financial data for the generation, management and reporting of lease standards.
“At Accruent, we want to ensure an accurate and simplified transition for customers planning for the FASB 842 changes,” said John Borgerding, CEO of Accruent. “It’s important for our customers to understand their current lease terms and how they might be impacted by these new lease accounting standards.”