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Bramasol Leasing Administration Team

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New Webinar: ASC 842 Leasing Disclosures: More Than Compliance – Insights To Action

Posted by Bramasol Leasing Administration Team on Mon, Sep 17, 2018 @ 06:07 AM

If you thought ASC 842 Disclosures were just to make the SEC happy, think again. Leveraging Bramasol’s Disclosure reports and analytics on SAP S/4 can provide you with insights into your lease portfolio. Manage costs, understand interest rates and view your portfolios globally so you can have real insights into your leased asset portfolio.

Join us on September 27, 2018 for this timely webinar:

ASC 842 Leasing Disclosures: More Than Compliance – Insights To Action

September 27, 2018 - 10-11 AM PDT - 1-2 PM EDT

Register Here to Attend

27-sep-webinar-banner-web-420x300

Note: video recordings of all Bramasol webinars are made available to registrants so you may want to register even if you're unable to attend the live sessions.

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Topics: leasing, ASC 842

New eBook: Transitioning to ASC 842 using the Portfolio Approach to Group Leases

Posted by Bramasol Leasing Administration Team on Mon, Aug 13, 2018 @ 11:11 AM

LeaseAdministration-HotTipWith less than five months remaining until January 2019, when public companies have to comply with new leasing standards, ASC 842 and IFRS 16, your implementation plans should already be well underway.

Even if you haven't started yet, there is still a small window of time to have a successful Q1 2019 implementation to enable reporting 45 days after March 31, 2019 - but only if you proactively begin now.

This new eBook from Bramasol's leasing experts drills down for a detailed look at key issues and best practices regarding usage of the Portfolio Approach to implementation of the ASC 842 Lease Accounting Standard.

new ebook on Transitioning to ASC 842, using the Portfolio Approach to Group Leases

This is beneficial by grouping leases of assets in the same class that is comprised assets with similar lease terms and discount rates.An entity may apply the Portfolio Approach to a group of leases within an asset class when doing so does not materially change the financial statement presentation when compared to applying the individual lease methodology.

Key topics addressed in the eBook include:
  • When can an entity apply the Portfolio Approach under ASC 842
  • Application of the Portfolio Approach in determining the Lease Term
  • Application of the Portfolio Approach in the Incremental Borrowing Rate
  • Practical Considerations for the Implementation of Portfolio Approach at Your Company

 

Click below to download the ebook.

Download the eBook: Transitioning to ASC 842 using the Portfolio Approach to Group Leases

 

 

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Topics: Leasing-Hot-Tips, ASC 842

eBook - Real Estate Leases Accounting and Business Considerations for Implementation under ASC 842 / IFRS 16

Posted by Bramasol Leasing Administration Team on Tue, Jul 31, 2018 @ 04:56 AM

In February 2016, the Financial Accounting Standards Board IgnitePossible-HotTip200x130

(FASB) issued Accounting Standards Update (ASU) 2016-02 (“ASC 842”) Leases, which provides new guidelines that change the accounting for leasing arrangements. The new leasing standard becomes effective in fiscal years beginning after December 15, 2018

The primary purpose of the standard is to address the current accounting treatment of operating leases which are deemed to be off balance sheet financing arrangements and are only disclosed via a company’s financial footnotes in the “Commitments and Contingencies” footnote. Upon the adoption of ASC 842, for every identified lease, companies will be required to create a lease liability calculated as the present value of the future fixed payments and a corresponding asset (“right of use” asset).

The right of use asset will be amortized over the life of the lease. The income statement will be impacted by a straight-line lease expense item that would essentially contain an interest component with the amortization of the asset being the plug-in order to achieve straight line lease expense over the life of the lease. One of the key challenges of adopting the new standard will be for companies to assess and apply the incremental borrowing rate applicable to them which will be used in the present value calculations for the capitalization of lease liability and right of use assets related to leases.

The new leases standard will significantly affect lessees and lessors in the real estate industry, including their considerations related to non-lease components, initial direct costs, and accounting for sale- leaseback transactions. In addition, real estate lessors will need to understand the standard’s broader implementation implications for lessees as well as the potential for changes in tenant behaviors.

eBook Real Estate Leases ASC842  IFRS16 TueTip

This eBook also addresses the three most common forms of real estate lease;

  • Net Leases or triple net lease,
  • Modified Gross or Base year Leases and
  • Gross Leases

Lessees and lessors are required to separate lease components and non-lease components (e.g., any services provided) in an arrangement and allocate the total transaction price to the individual components. Lessors would perform the allocation in accordance with the guidance in the new revenue recognition standard, and lessees would do so on a relative stand-alone-price basis (by using observable stand-alone prices or, if the prices are not observable, estimated stand-alone prices).

This eBook will help you explore different accounting treatment for property taxes and insurance, Variable Lease Payments, Initial Direct Costs, Sale-Leaseback Accounting, and at the end best part is Business Impact and Implementation Considerations.

Download the eBook now

As crunch time is here for ASC 842 and IFRS 16 compliance, Bramasol can still help you comply on-time. Ask us how!

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Topics: SAPLeaseAdmin, IFRS16, RLCS, Leasing Solution, ASC 842

Getting Ready for the New Lease Accounting Standards

Posted by Bramasol Leasing Administration Team on Tue, Jun 26, 2018 @ 05:34 AM

LeaseAdministration-HotTipThis recent article in Accounting Today provides a useful summary of the key issues that companies are facing as they get ready for compliance with IFRS 16 and ASC 842.

The changes, which take effect in January 2019 for public companies changes will require companies to recognize all leases as assets and liabilities, unless the lease term is 12 months or less, or the underlying asset has a low value.

Implementation of the new standards will require companies to do the following:

  • Track the details on all lease contracts (buildings, cars, office space, equipment, etc.).
  • Break down the contracts into the relevant components that determine the classification of the Right of Use Assets and Liabilities.
  • Make the appropriate calculations.
  • Generate the appropriate journal adjustments to accurately reflect leases on the balance sheet and income statement.

Regarding the current state of implementation, the article cites these key points:

"As was the case with revenue recognition and other accounting changes, readiness for the new lease accounting guidelines is lagging, and many organizations will be scrambling to comply in the second half of 2018. According to a recent Robert Half/Protiviti survey, more than half of companies surveyed (56 percent) have not begun transitioning to the new lease accounting standard. Sixty-nine percent of the largest firms have started the process, compared to 37 percent of the smallest organizations surveyed."

The top four challenges firms face in the transition include training staff, diagnosing the needed changes, finding professionals with the requisite expertise and updating their technology.

  • Too Complex and Risky for Spreadsheets
  • Best Practices in Lease Accounting
  • Standalone Applications
  • Integrated Applications

Leasing compliance- Implement the new standards IFRS 16 and ASC 842 26 Jun 2018Click here to read the full article in Accounting Today.

Overall, the article underscores the key point that Bramasol has been advocating since the new lease accounting standards were first adopted:  Get Started Now!

Rapid Leasing Compliance Solution Click Here to Learn More

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Topics: Leasing-Hot-Tips

Companies Need Holistic Approach to Lease Accounting Compliance

Posted by Bramasol Leasing Administration Team on Tue, Jun 5, 2018 @ 03:36 AM

LeaseAdministration-HotTipA recent article in Accounting Today provides an excellent view of how companies in many industries are moving toward compliance with the new lease accounting standards, ASC 842 and IFRS 16.

Highlights of the article include:

“The approach for implementing this lease accounting pronouncement really needs to be holistic for a company,” said CohnReznick partner Rebecca McDonald. “It can’t be siloed with just the accounting department. It has a broad reach across the organization and impacts a lot of different departments.”

The new standard requires putting many leases on the balance sheet for the first time, and she believes the accounting and finance department needs to take the lead role to drive the implementation. But the effort also should heavily involve the operations, IT, treasury, tax and facilities groups.

“It just has a broad reach,” said McDonald. “You have to work across the organization to really be able to gather all the information needed to implement the standard as far as the leases go, and to have that holistic team approach to make sure you leave no stone unturned when analyzing whether any of your contracts or any of your leases that haven’t been on the balance sheet are reported that way will be impacted, just to make sure that you have a complete inventory of all the contracts and leases that are in the organization. It’s just a lot heavier lift than it has been historically.”

The article also provides information from a recent survey conducted by staffing company Robert Half and consulting firm Protiviti, which focused on how companies are doing with the transition to new lease accounting standards.  The survey found that only 44 percent of companies have begun the transition process and that, of those that have started, only 48 percent have completed an assessment of what needs to be done.

Business services companies were the most likely to have begun the transition, at 71 percent, according to the survey respondents. Only 31 percent of executives in the retail and wholesale industry and 25 percent in construction said their organizations are currently working on adopting the new standard.

LeasingByIndustry

Click here to read the full article in Accounting Today.

Click here to learn more about Bramasol's solutions for Lease Accounting Compliance solutions.

 

Rapid Leasing Compliance Solution Click Here to Learn More

 

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Topics: Leasing-Hot-Tips, ASC842, IFRS16

General Availability for New Version 4.0 of SAP Lease Administration by Nakisa

Posted by Bramasol Leasing Administration Team on Tue, May 29, 2018 @ 07:29 AM

LeaseAdministration-HotTipNakisa, Bramasol's partner for leasing solutions, has announced general availability of the new 4.0 version of Lease Administration by Nakisa.

For SAP customers, this assures that Lease Administration by Nakisa 4.0 will integrate seamlessly with their SAP suite, and that the product has been tested and validated by SAP for security, performance, supportability, accessibility and documentation. The new release is compatible with current and upcoming SAP landscapes, while  reducing TCO for implementation, ERP integration costs, and overall risk.

Lease Administration by Nakisa is a simple and cost-efficient lease accounting solution, designed to support regulatory compliance with new leasing standards, manage global lease portfolios and streamline lease accounting operations. Lease Administration by Nakisa 4.0 introduces key enhancements including:

  • Enhanced compliance with new lease accounting standards (IFRS 16 and ASC 842)
  • Better control of the lease process from master lease agreement to contract level
  • Improved bi-directional integration with SAP

Learn more here.

According John Froelich, Vice President of Marketing and Strategy at Bramasol, "Nakisa's release of version 4.0 is another major step forward in continuing their leadership in solutions for leasing compliance, optimization and overall financial transformation.  These features enhance an already rich solution, deepening it's overall capability and widening the gap between it and other so-called lifecycle lease solutions."

As a partner of both SAP and Nakisa, Bramasol provides a holistic view to the impact that the new Leasing standard will have on your organization and purpose-built solutions for both rapid compliance and long term optimization of lease administration.  Learn more about Bramasol Leasing Solutions here.

Rapid Leasing Compliance Solution Click Here to Learn More

Nakisa 4.0 key enhancements

 

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Topics: Leasing-Hot-Tips, ASC842, SAPLeaseAdmin, IFRS16

New Rapid Compliance Solution for Lease Accounting Standards ASC 842 and IFRS 16

Posted by Bramasol Leasing Administration Team on Tue, May 15, 2018 @ 12:00 AM

LeaseAdministration-HotTipBramasol, the leader in compliance and finance innovation solutions, has announced a new, purpose-built product that reduces complexity and implementation costs, to give companies across a variety of industries a ready-to-deploy solution for lease accounting disclosure reporting and compliance.

In 2016, the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) issued new standards for lease accounting: IFRS 16 & ASC 842, which must be implemented by 2019. Both IFRS 16 and ASC 842 are the result of a joint effort between the IASB and FASB to meet the objective of improved transparency, comparability and financial reporting.  These changes will impact virtually all companies, whether lessors or lessees.

Since the new leasing standards-setting process began, Bramasol has been at the forefront of addressing critical issues to help our customers get ready for both IFRS 16 and ASC 842. We have developed the Lease Administration Solution Engagement Roadmap (LASER) that brings together all compliance requirements, stakeholder needs and work-stream processes within a unified and disciplined implementation process.

The Rapid Leasing Compliance Solution further distills these overall efforts in a targeted solution, designed to help companies with straightforward leasing portfolios to cut through the complexity of the new standards and achieve compliance without excessive hassles or expense.

This purpose-built offering is designed for companies with up to 300 leases and includes:
- 5 Basic Scenarios for Real Estate, Movables, or both
- Set-up of Nakisa and/or RE/FX
- Standard data & document loading
- Security set-up
- Standard out-of-the-box disclosures and reports for ASC 842 or IFRS 16

Click Here to see more details on Rapid Leasing Compliance Solution

Rapid-Compliance-banner-social-new

 

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Topics: Leasing-Hot-Tips, ASC842, SAPLeaseAdmin, IFRS16, RLCS

Join SAP Leasing User Group Meeting at EXXON, May 3, 2018

Posted by Bramasol Leasing Administration Team on Mon, Apr 30, 2018 @ 11:11 AM

LeaseAdministration-HotTipSAP Leasing User Group

Hosted by ExxonMobil
(Options for In-person or Online Attendance)

May 3, 2018 - 10 AM PDT / 1 PM EDT

Join us for the latest SAP Leasing User Group Meeting hosted by ExxonMobil, Bramasol and SAP. Pete Graham will chair a robust discussion on the latest issues and challenges on SAP Leasing Solutions. Solution and Accounting experts from Bramasol and Nakisa will be onsite to provide additional insights into the product and project based experience.

If you are looking for real answers on how you can use the SAP solutions to comply with ASC 842 and IFRS 16, then this is the place for you. The discussion will include ample opportunity for open Q&A to allow participants to get answers to specific questions.

Please join us in person at ExxonMobil for what promises to be a great meeting. 

ExxonMobil Global Services Company
22777 Springwoods Village Parkway (W1.4A.345) 
Spring, Texas USA 77389

This will be available both in person and as a remote dial-in for those who cannot attend in person.

Register Here to Attend Online 

If you plan to attend in person, please email your Name, Email and Company to jfroelich@bramasol.com and we will add you to the list.

LeaseAccounting

Looking forward to seeing you there!

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Topics: Leasing-Hot-Tips, SAPLeaseAdmin

Watch how Bramasol helped a Leading Multinational Retail Giant comply with Leasing Standards ASC 842 and IFRS 16

Posted by Bramasol Leasing Administration Team on Thu, Apr 5, 2018 @ 05:50 AM

The customer is a Leading Global Organization and Multinational Retailing Corporation with annual revenues in excess of US$480 billion and which is one of the largest private employer in the world with over 2 million employees. As an international company, our customer is impacted by the new lease regulations ASC842 and IFRS16 that will take effect from January 2019. These new standards will change the way balancing & handling of lease contracts is performed and will require the company to report almost all lease contracts on the balance sheet, rather than off balance sheet.

The Company is not an early adopter of the standards, but needs to load its leases as part of a first release by March 2018 using the old standards (ASC 840 and IAS17) for North America, Europe, Latin America & Asia Pacific. This is a major challenge, since it involves around 10,000 leases distributed amongst about 950 company codes.

Multinational Retail giant CS

As leading co-innovation partner with both SAP & Nakisa, Bramasol provided a holistic set of solutions & expertise to address the impact and make the company ready for new Lease Accounting Standards ASC842 & IFRS16.

 

We Implemented Nakisa SLAN Enabled control of lease contracts with multi-layered approval process Integration with Native Finance System which is Secure, Scalable & Flexible. This enabled lease accounting compliance & streamlined lease administration processes for global lease portfolios.

 

Since the new leasing standards-setting process began, Bramasol has been at the forefront of addressing critical issues to help our customers get ready for both IFRS 16 and ASC 842. We have developed the Rapid Leasing Compliance Solution which further distills these overall efforts in a targeted turnkey solution, designed to help companies with straightforward leasing portfolios to cut through the complexity of the new standards and achieve compliance without excessive hassles or expense.

This turnkey offering is designed for companies with up to 300 leases and includes;

  • 5 Basic Scenarios for Real Estate, Movables, or both
  • Set-up of Nakisa and/or RE/FX
  • Standard data & document loading
  • Security set-up
  • Standard out-of-the-box disclosures and reports for ASC 842 or IFRS 16

Click here to Learn more about Rapid Leasing Compliance Solution

Request Demo

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Topics: ASC842, SAPLeaseAdmin, IFRS16, Leasing Solution

IFRS 16 Leases: Complying with the New Standard - Don't Wait to Get Started

Posted by Bramasol Leasing Administration Team on Mon, Apr 2, 2018 @ 09:04 AM

LeaseAdministration-HotTipA recent article in Accountancy Daily looks at the important challenges that companies are facing as they prepare for implementation of new lease accounting standard, IFRS 16.  

The article touches on key topics including:

  • Transparency
  • Data capture
  • Legacy processes
  • Transition processes

The article includes interview comments from Pete Graham, director for finance solutions and mobility at SAP Finance, along with other industry thought leaders.

According to Pete Graham, "Because clients have waited on other projects that have come before, they see that was not a good strategy, they are being more proactive than normal".

"I have never had a customer come back to me and say 'you should have told us to wait longer to start this compliance project, because we have finished early and it was a piece of cake'," Graham says. "When we started looking at this market as far back as 2010, we talked to around 500 customers and found there was only one who reported they already had full visibility of their leases. Every other customer – roughly 499 of them – said 'this information is scattered across the enterprise, in different forms. Some on paper, some electronic'. One customer had lease information across 700 different finance departments around the world."

Regarding data capture challenges, the article also points out, "The practicality of collecting the information about company leases, though, is far from straightforward. Most companies are not in the practice of capturing leases as they would other data and the information is often scattered in various forms across the organisation. Instead, the majority of companies manage their leases in spreadsheets, and even then, there is no guarantee all the leases are covered. Some, especially long-standing leases, may be handwritten, so even where the agreement is located, deciphering the information within it can prove problematic."

Since the new leasing standards-setting process began, Bramasol has been at the forefront of addressing these and other issues to help our customers get ready for both IFRS 16 and ASC 842. We have developed the Lease Administration Solution Engagement Roadmap (LASER) that brings together all compliance requirements, stakeholder needs and work-stream processes within a unified and disciplined implementation process.

Working with dozens of clients Bramasol has developed a Data Abstraction and Migration methodology that includes machine learning, OCR and data quality assurance steps.  “Our goal with this new service,” said John Froelich, VP Marketing and Strategy, “ is to provide our clients with a complete end to end service that gets them compliant and sets them up for long – term success.”   By combining Bramasol’s Abstraction Services with the LASER methodology, clients have an end-to-end process to ensure compliance that is efficient, effective and meets the scrutiny of auditors.  Bramasol Leasing Solution

 Leasing Data Transformation_R1

Click here to learn more about how Bramasol can help with your lease accounting compliance.

 

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