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FASB Update to ASC 842 Provides Relief on Easements and Rights of Way Accounting Methods

Posted by Bramasol Leasing Administration Team on Sun, Feb 18, 2018 @ 05:25 PM

LeaseAdministration-HotTip.jpgAs the January 2019 deadline for implementing new lease accounting standards (ASC 842 and IFRS 16) approaches, FASB has been addressing a number of issues that arise with regard to transitioning from current regulatory practices to the new standards. 

As part of this evolutionary process, FASB has issued Accounting Standards Update 2018-01 "Land Easement Practical Expedient for Transition to Topic 842".

This update will be of particular importance for industries such  as Oil & Gas, Telecommunications, Utilities and other sectors that traditionally depend heavily on easements and rights of way to conduct their business.

In connection with the FASB’s transition support efforts, a number of stakeholders in these industries have inquired about the application of the new lease requirements in Topic 842 to land easements. Land easements (also commonly referred to as rights of way) represent the right to use, access, or cross another entity’s land for a specified purpose. 

Key provisions of the update are as follows:

"To address stakeholder concerns about the costs and complexity of complying with the transition provisions of the new lease requirements, the amendments in this Update provide an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the current leases guidance in Topic 840.

An entity that elects this practical expedient should evaluate new or modified land easements under Topic 842 beginning at the date that the entity adopts Topic 842. An entity that does not elect this practical expedient should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease."

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Click Here to Read the Entire Update 2018-01 to Topic 842

Click Here for More Information on Bramasol Lease Accounting Solutions

 

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Topics: Leasing-Hot-Tips

Start a Free Trial of S/4HANA Cloud

Posted by Bramasol Financial Transformation Team on Mon, Feb 12, 2018 @ 05:38 PM

Start your SAP S/4HANA experience with a free, 14-day trial.  

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SAP S/4HANA is the next generation business suite designed to help you run simple in the digital economy. With this new trial, you will discover the value of simplicity across concrete roles and predefined scenarios:

  • Production Planner: Manage forecasted demand, monitor & manage material shortages, and schedule MRP runs
  • Project Manager: Easily create, plan, staff, and bill customer projects
  • Cash Manager: Efficiently monitor and analyze cash position, make and track bank transfers
  • General Ledger Accountant: Effortlessly review financial statements, account balances, and individual line items
  • Accounts Receivable Accountant: Quickly process incoming payments, collect cash, and clear customer accounts
  • Accounts Payable Accountant: Efficiently review and manage vendor accounts and invoices
  • Accounts Receivable Manager:: Easily manage and monitor a company's accounts receivables
  • Purchaser: Easily create a purchase order, post a goods receipt, and create an invoice
  • Sales Representative: Reviews sales orders, identify problems, and analyze options for resolution
  • Quality Inspector: Verify the quality of inspection lots and take usage decisions
  • Asset Accountant: Display the asset master worklist and check fixed asset details

As a co-innovation leader with SAP and the premiere resource for RevRec, Leasing and Financial Innovation solutions, Bramasol is geared to deliver results for the Office of the CFO and across the entire enterprise. Start your free trial and we can help you get started on your journey to new levels of productivity, user engagement and improved business results.Start Your Free Trial Now SAP S4HANA 14 day free trial Bramasol TuesdayTip-1.jpg

Click here to start your free trial of S/4HANA Cloud

 

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Topics: FinancialTransformation-Hot-Tips

Join Bramasol at SAPInsider Financials 2018

Posted by Bramasol Financial Transformation Team on Sun, Feb 4, 2018 @ 01:21 PM

Reminder to Join Bramasol at SAP Insider Financials 2018

We are looking forward to Financials 2018, which will take place February 12-15 at the Wynn Las Vegas

As a leading co-innovator with SAP, Bramasol has deep experience in serving the Office of the CFO and is dedicated to helping our customers optimize integration, analytics, compliance, disclosure reporting and best practices for Revenue Recognition, Leasing Administration, and Financial Innovation using S/4HANA Cloud along with pre-built reporting solutions and integrated Cloud Analytics.

Please plan to join Bramasol at Booth #435 and learn the latest about our offerings.
Also, plan to attend Bramasol's hosted sessions:

RevRec — Updates on SAP Revenue Accounting and Reporting and project insights
Chris Ritterhern, Bramasol; Sarah Thompson, Bramasol; and Pete Graham, SAP

Room:
La Tache 2

Monday, Feb 12, 11:15am 12:15pm

Clarity from chaos — Using LASER methodology for a successful leasing compliance project
John Froelich, Bramasol; Carrie Peterson, Bramasol; and Pete Graham, SAP

Room:
Mouton 2

Tuesday, Feb 13, 8:30am-9:30am

Certificate-of-Qualification-for-Disclosure-Reports.gifWe will also be debuting our new SAP-Qualified Partner-Packaged Solution on Analytics For Disclosure Reporting.

This pre-built solution addresses reporting in Revenue Recognition and Leasing in support of ASC 606 and 842 regulations for companies in the Consumer Products, High Tech, Industrial Machinery Components, and Retail industry in North America. It has been reviewed and qualified as an SAP-qualified partner-packaged solution for SAP® Analytics Cloud.

This solution is deployed based on a predefined scope, leveraging preconfiguration, accelerators, methodologies, and tailored partner services to help customers run simple and realize rapid time-to-value with reduced risk and predictable outcome.

Click below to register and get a $300 discount courtesy of Bramasol.

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Video: SAP Cloud Analytics Overview

Posted by Bramasol Financial Transformation Team on Sun, Feb 4, 2018 @ 07:49 AM

FinancialTransformation-HotTip.jpgAs a leading co-innovation partner with SAP, Bramasol has been at the forefront of implementing real-world applications of SAP Cloud Analytics across a variety of business scenarios.

SAP Cloud Analytics enables C-level executives and other staff to Discover, Analyze, Plan, Predict, and Collaborate in one integrated experience designed expressly for the cloud.

This allows you to access all data in one location and embed analytics directly into business processes to turn instant insight into quick action.

Key features of SAP Cloud Analytics include:

  • Cloud deployment
  • Real-time analytics
  • Ad-hoc queries
  • Collaboration tools
  • Access on-premise and cloud data
  • Explore, discover, visualize, and communicate data
  • Discuss and share insights in context
  • Gain access to real-time business intelligence

This short video provides an overview of SAP Cloud Analytics and shows the key components of the tool with a high-level view of how stories load into SAP Digital Boardrooms.  Please also look forward to new videos coming soon describing how SAP Cloud Analytics can integrate multiple data sources to provide high-level reporting along with drill-down capabilities for detailed content and context.

Click here or below to watch the video.

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Topics: FinancialTransformation-Hot-Tips

Video: New Lease Accounting Standards Get Ready for Compliance

Posted by Bramasol Leasing Administration Team on Wed, Jan 31, 2018 @ 06:12 AM

Issued by the IASB (International Accounting Standards Board), IFRS 16 & ASC 842 lease accounting requirements go into effect starting on January 1, 2019. The new standards require extensive reporting detail and have the potential for major impact on companies' balance sheets and income statements. Industry experts advise companies with large lease portfolios to allow significant time in advance of the deadline to identify, compile, and evaluate lease contracts.

For over two years, Bramasol has been at the bleeding edge of Lease Administration execution, helping numerous organizations comprehend and plan for the new evolving benchmarks. The new compliance regulations have a significant impact on how businesses account for their leases.

This video of our recent webinar features a panel discussion by Bramasol’s Center of Excellence (CoE) Experts, who shared “lessons learned” from projects to date.

Key areas covered in this value session are;

  • Regulatory changes for Lease Accounting
  • Impact of New Standards
  • Bramasol’s Lease Administration Solution Engagement Roadmap (LASER) Methodology
  • Project Scoping & Security roles
  • Data based scenario
  • Landscape & Summary discussion

Click Here to View recorded webinar Video in Bramasol Resource Center

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Topics: leasing

Video: RevRec Lessons Learned from Customer Projects

Posted by Bramasol RevRec Team on Mon, Jan 29, 2018 @ 06:38 AM

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The deadline for new Revenue Recognition standards, ASC 606 and IFRS 15, has arrived. 

 

Are you #RevRecReady ?

 

For more than two years, Bramasol has been at the forefront of RevRec implementation, helping many companies understand and prepare for the new standards.

In our most recent monthly Revenue Recognition webinar, we provided a look back on lessons learned from these implementation projects and reviewed where you should be now from a forward-looking perspective.

In this video, recorded on January 16, 2018, you can hear the perspective of the auditor, IT, Finance and Business leaders to understand what they're learned from RevRec projects and the key points about what worked and what didn’t. 

Key issues addressed in the webinar video include:

  • Looking Ahead in 2018
  • Shifting Focus from Early Adoption
  • Considering All Stakeholders Involved
  • Understanding Drivers Behind Each Perspective

Click Here to View Video in Bramasol Resource Center

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Topics: revrec hot-tips

How to Engage with Auditors During Your Revenue Recognition Implementation

Posted by Bramasol RevRec Team on Mon, Jan 22, 2018 @ 07:18 AM

RevRecReady-HotTip.jpgWith implementation of ASC 606 and IFRS 15 now in full swing, one important area that has moved to the forefront is how to work with your auditors to help with a smooth transition and to assure compliance. 

Below is a checklist of key factors to keep in mind for optimizing the audit process and engage with your auditors.

  • Involve your auditors early and often!
  • Perform a thorough assessment of risks that may arise as a result of applying the new standard, considering both the accounting requirements and the disclosure requirements.
  • Use your auditors as a sounding board. Ask for their reactions, while there is still time to reevaluate, modify, and achieve high-quality financial reporting.
  • Communicate initial accounting conclusions.
  • Plan your disclosures early, communicate those plans, and share draft disclosures.
  • Discuss potential changes to internal processes, systems, and controls. Work with your auditors to develop plans for testing new or modified internal controls, including controls over the implementation of new systems to track new or different information.
  • Develop action plans that outline when key analyses, estimates, and disclosures will be ready for audit.
  • Keep your auditors informed as to your implementation timeline and status.
  • Bottom line: engage in open dialogue with your auditors. Share. Involve. Listen. Repeat.

Click here to learn more about RevRec compliance issues and/or request assistance to get #RevRecReady

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Topics: revrec hot-tips

Read the CFO's Guide to Financial Transformation

Posted by Bramasol Financial Transformation Team on Mon, Jan 15, 2018 @ 12:23 PM

FinancialTransformation-HotTip.jpgCorporate finance professionals face many challenges. They need to reduce the amount of time spent on inefficient month-end/year-end closing processes, improve their ability to extract timely and accurate financial information and streamline overall operational end-to-end business processes.

On the regulatory front, CFOs also must deal with, Revenue Recognition Changes (ASC 606 and IFRS 15), Lease Accounting Changes (ASC 842 & IFRS 16), Financial Instruments Impairments & Disclosures (IFRS 9) as well as on-going changes in the global regulatory environment.

The accelerating set of new challenges and changing compliance requirements threatens to overwhelm the inherent limitations of existing legacy finance and ERP systems. As companies undertake Financial Transformation to improve their ability to be nimble, react quickly and take advantage of market trends, several key things are emerging:

  • Drive to continuous close
  • Consolidation of data sources for reporting
  • Improved visibility for compliance with new standards for Revenue Recognition, Leasing and Financial Impairments
  • Real-time cash management

Some of the key Financial Transformation opportunity areas include: 

  • New-generation architectures, such as SAP S/4HANA, that combine core ERP & Finance systems with plug-in modular best-of-breed capabilities for revenue recognition, leasing, ecommerce, HR, travel, supply chain management, and more.
  • A “single-source-of-truth” approach that avoids discussions of who’s data is right, thereby enabling much faster and better tactical decision-making.
  • Cloud-based implementation options that can greatly reduce time-to-operation and which integrate seamlessly with in-house implementations to enable cost optimization along with flexibility and scalability to support growth.
  • Advanced real time analytics and user interface (UX) technologies that can access information throughout the unified systems and provide easily tailored comprehensive reporting for ongoing management or ad hoc decisions.

Corporate finance professionals depend on the technologies and tools that provide critical information they need to drive timely decisions and to anticipate emerging issues that could impact the business.

By leveraging the in-memory data and processing capabilities of the SAP S/4HANA architecture and S/4HANA Cloud deployment scenarios, CFOs can seamlessly unify their information landscape to remove the gaps and ease the pain-points arising from the artificial segmentation of information.

Instead of always grappling with reassembling disparate pieces of the picture this "single-source-of-truth" approach enables CFOs and staff throughout the company to see a holistic real-time view that encompasses all operational data sets and analysis capabilities within a single unified architecture. In addition to improving both the access to and the ability to manipulate information, S/4HANA also dramatically improves real-time analytics performance because nothing must be moved, massaged or reconciled before the analysis.

To learn more, read the CFO's Guide to Financial Transformation

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Topics: FinancialTransformation-Hot-Tips

FASB Proposes Improvements to Lease Standard Implementation

Posted by Bramasol Leasing Administration Team on Mon, Jan 8, 2018 @ 05:07 AM

LeaseAdministration-HotTip.jpgOn January 5, 2018, the Financial Accounting Standards Board (FASB) issued a proposed Accounting Standards Update (ASU) regarding the new lease accounting standard ASC 842.

The proposed ASU is intended to reduce costs and ease implementation of the Leases standard for financial statement preparers.  Stakeholders are encouraged to review and provide comment on the proposed improvements by February 5, 2018.

Two key proposed changes in this ASU deal with comparative reporting during the transition period and a practical expedient for simplifying the requirements to separate nonlease components of a contract.  Summaries of the proposed changes are below.

Transition:

"Comparative Reporting at Adoption The amendments in this proposed Update would provide entities with an additional (and optional) transition method to adopt the new lease requirements by allowing entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption consistent with the request by preparers. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which the entity adopts the new lease requirements would continue to be in accordance with current GAAP (Topic 840), including disclosures." 

Separating Components of a Contract:

"The amendments in this proposed Update would provide lessors with a practical expedient, by class of underlying assets, to not separate nonlease components from the related lease components and, instead, to account for those components as a single lease component, if both of the following are met: 1. The timing and pattern of revenue recognition for the nonlease component(s) and related lease component are the same. 2. The combined single lease component would be classified as an operating lease. A lessor electing this proposed practical expedient would be required to disclose the class or classes of underlying assets for which it has elected the practical expedient and the nature of the nonlease components included within the single lease component."

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Read the FASB Press Release Here.

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Topics: Leasing-Hot-Tips

SEC Office of Chief Accountant Urges Careful Planning for Implementing ASC 842 Lease Standard

Posted by Bramasol Leasing Administration Team on Mon, Jan 1, 2018 @ 06:44 AM

LeaseAdministration-HotTip.jpgWith arrival of 2018, many companies are now shifting into a higher gear toward implementation of the new lease accounting standards, ASC 842 and IFRS 16. 

In recent remarks, Michael P. Berrigan, Professional Accounting Fellow, Office of the Chief Accountant, SEC, provided an update on key implementation issues and alerted companies of the importance of careful implementation planning - starting as soon as possible.

Among the issues that Berrigan emphasized were:

  • Identification of contacts that represent or contain a lease is a key step.
    "This step is necessary to fully assess the scope of contracts subject to the new standard. Once the complete inventory of contracts is identified and analyzed, I believe a company can among other items, better assess the additional level of effort required for implementation."

  • Transition guidance differs from the guidance applied on a go-forward basis under ASC 842.
    "I would encourage entities to educate themselves on these differences during implementation and continue to follow the Financial Accounting Standards Board’s (“FASB”) recent standard setting activities to allow sufficient time to gather relevant information to apply both the transition and general provisions of the standard."

  • Careful Implementation Planning, Management and Oversight are Necessary
    "Leveraging lessons observed from the revenue implementation efforts, I encourage entities to plan and manage lease implementation activities to allow for adequate time to formulate reasonable judgments in the application of the standard and evaluate any necessary changes in Internal Control over Financial Reporting (“ICFR”) that will be required to support ASC 842."

Click here to read the full remarks from Mr. Berrigan.

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Click Here to Learn More About Bramasol Solutions for Lease Accounting

 

 

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Topics: Leasing-Hot-Tips

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