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Bramasol Leasing Administration Team

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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.


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.

CS Retail

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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Companies Brace To Put Leases On Balance Sheets

Posted by Bramasol Leasing Administration Team on Mon, Mar 12, 2018 @ 04:17 AM

LeaseAdministration-HotTip.jpgThis recent article in Global Finance provides an excellent overview of challenges facing companies regarding compliance with new Lease Accounting standards, ASC 842 & IFRS 16, "Companies Brace to Put Leases on Balance Sheet".

Some highlights from the article are as follows:

"It’s not just 2019-and-forward numbers that need to be stated. The standards also require restatement of prior years’ balance sheets. While the international standard requires all leases to be clearly delineated, the US GAAP standard parses some fine points, exempting many small-value or short-term leases. It also exempts leases of intangibles, mineral rights, inventory, timber and assets under construction."

"Restating the books won’t be a fully automated task. Even technologists acknowledge that there’s no downloadable magic wand that will move the leases from the footnotes into the accounting equation.

The difficulties start, as they often do, with the data gathering phase.

“Most companies don’t have this end of the enterprise electrified,” says Pete Graham, SAP’s director of finance solutions and mobility. “Most lease data still resides in paper contracts.”

He cites the transportation, retail, pharma and oil-and-gas sectors as the ones most impacted by the accounting changes. They, presumably, become the ones that will need to explain the new guidance to the stock analysts and rating agencies."

So, where do you go from here?

As a recognized industry innovator in transformative Office of the CFO solutions and the clear leader in helping companies implement recent major changes to Revenue Recognition standards, Bramasol has now also jumped out ahead of the curve to create strategic and tactical implementation solutions for ASC 842 and IFRS 16 lease accounting changes.

All companies, whether lessors, lessees or both, need to leverage the process of changing their lease management methodologies. This will allow them to gain better visibility of their lease portfolios, streamline the process of lease management and reduce overall costs.

Our holistic approach assures Compliance with the new standards while also providing a structured solution for Optimization of all lease administration and portfolio management and an integrated system for Transformation of how leasing is handled within overall end-to-end business processes.

Companies Brace To Put Leases On Balance Sheets_blog-graphic-12-mar-updated.jpg

For more information, visit the Bramasol Leasing Solutions web page.

 

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Topics: Leasing-Hot-Tips

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."

Key Points of FASB Update_TuesdayTip_ASC842.jpg

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

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

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."

 FASB-Proposes-Improvements-to-Lease-Standard-Implementation.jpg
 
Leases_ASU_380x285.jpg

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.

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

Click Here to Learn More About Bramasol Solutions for Lease Accounting

 

 

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Topics: Leasing-Hot-Tips

Kick-off Meeting for New SAP Leasing User Group on December 5, 2017

Posted by Bramasol Leasing Administration Team on Mon, Nov 27, 2017 @ 05:07 PM

LeaseAdministration-HotTip.jpgWe are excited to announce the formation of a new SAP Leasing User Group and pleased to invite you to the first online meeting:
December 5, 2107 at 9 AM PST - 12 PM EST.

The purpose of the Leasing User Group is to bring together SAP, customers and partners in a community to share information on the latest features, roadmap and updates on the SAP Lease Administration by Nakisa (Lease Administration) and SAP Real Estate Management (ReFX) solutions.  

You will hear from the SAP product leaders, Pete Graham and Tom Andersen, as well as, Nakisa and others.   Product experts will be on hand to answer your questions live.

Click Here to Register to Attend the Leasing User Group Kickoff Meeting

 SAP-Leasing-User-Group.jpg

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Topics: leasing, Leasing-Hot-Tips

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