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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

If You've Been Using SD RevRec for ASC 606, It Can't Last Much Longer

Posted by Bramasol RevRec Team on Tue, Jul 24, 2018 @ 09:46 AM

RevRecReady-HotTip-12-1During the lead-up to implementation of the new Revenue Recognition standards, ASC 606 and IFRS 15, companies chose a variety of paths to get ready. 

In some cases, they took a long term view and implemented purpose-built solutions such as SAP Revenue Accounting and Reporting (RAR) to achieve compliance, while also laying the groundwork to optimize and transform their financial operations.

However, in some situations, companies simply tried to make as few changes as possible while cobbling together bare minimum compliance approaches.  One of these shortcuts used by companies running SAP was to try and squeeze compliance functionality out  of existing SAP SD Revenue Recognition functionality running in ECC environments.

From the outset, SD RevRec posed a number of shortcomings with regard to meeting the new requirements, including:

  1. No Multiple Element Arrangements: SD RevRec does not support allocation of transaction price, one of the fundamental steps for ASC 606 and IFRS 15. Revenue is always recognized separately for every SD order item according to its specific pricing conditions.
  2. Parallel Accounting: SD RevRec cannot manage different accounting principles, with makes it difficult to leverage automation and increases the effort needed for reconciliation by accounting teams.
  3. Cost Recognition: Cost of Goods Sold (COGS) is not reconciled with revenue recognized.  SD can only recognize cost at the time of PGI or billing, depending on set-up of the pricing scheme in SD.
  4. Disclosures and Reporting: Tranditional SD RevRec is not capable of meeting the new disclosure requirements for ASC 606 and IFRS 15.

SD RevRec tue-tip-24-JulDespite these limitations and the recommendations from SAP that customers transition to RAR, some companies managed to get by with SD RevRec for initial implementation of the new standards.

Unfortunately those companies are now facing another big hurdle in the near future because SD RevRec will no longer be supported as the SAP technology environment moves ahead to S/4HANA.  Current estimates indicate that SD RevRec will become dead-ended by the end of 2020.

SD-RevRec-Deadend

 

So, if your company is in this situation, what should you be doing now?

  1. The first step is to look at implementing SAP RAR as soon as possible.  If you have SAP, you already own the RAR solution as part of SAP FICO. Also RAR can be deployed as a RevRec engine for other ERP legacy environments.
  2. Consult your outside accountants and knowledgeable SAP consultants to define a pilot program running SAP RAR in parallel with existing methods.
  3. Look into leveraging a purpose-built fast-track approach such as Bramasol's Rapid RevRecReady Compliance Solution.

The most important issue is DO NOT WAIT!

The clock is ticking toward the end of SD RevRec and you're going to need a viable alternative in place!

 

Request RevRec Consulting Support

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Topics: revrec hot-tips

Understanding and applying incremental lease borrowing rate analyses under ASC 842

Posted by Julio Dalla Costa on Tue, Jul 17, 2018 @ 04:57 AM

LeaseAdministration-HotTipIn February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02 ( “ASC 842”), Leases, which provides new guidelines that change the accounting for leasing arrangements.

Background on ASC 842

The new leasing standard becomes effective in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, for: • Public business entities • Not-for-profit entities that have issued (or are a conduit bond obligator for) securities that are traded, listed, or quoted on an exchange or an over-the-counter market• Employee benefit plans that file financial statements with the US Securities and Exchange Commission (SEC).

For all other entities, it becomes effective in fiscal years beginning after  December 15, 2019, and interim periods in fiscal years beginning after  December 15, 2020. Early adoption is permitted at any time for all entities.

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, Therefore, 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.

Incremental Borrowing Rate

ASC 842 defines “incremental borrowing rate” as: The rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

ASC842 Incremental Borrowing Rate Bramasol tuesday-tip-17JULYCollateralized basis

The definition of “incremental borrowing rate” in ASC 842 represents a change from how that term was defined under ASC 840. The definition under ASC 842 makes it clear that the lessee is required to assess the rate as a secured rate. Under ASC 840, a lessee was to determine a rate that was “consistent with the financing that would have been used in the particular circumstances,” which could have resulted in the lessee using an unsecured borrowing rate.

Accordingly, if a lessee used an unsecured rate to determine lease classification under ASC 840, the adoption of ASC 842 should result in it utilizing a lower discount rate for determining whether the lease qualifies as an operating lease. When combined with other changes from ASC 840, there is a greater chance that leases classified as operating leases under ASC 840 will be finance leases under ASC 842.

Similar term

In determining the incremental borrowing rate, a “one size fits all” will not be sufficient to be compliant with the new standard. Therefore, companies will need to determine the incremental borrowing rate by average lease terms. For example, the incremental borrowing rate applied to a twenty-year lease should not be the same as the rate applied to a three-year vehicle lease.

Similar economic environment

Many companies have asked whether it is possible to use the Company’s corporate cost of capital borrowing rate which is usually is at the company’s headquarters. As noted in the guidance, the incremental borrowing rate will have to applied to similar economic environments so wherein companies have corporate debt at the US headquarters they will be forced to assess and document the differences in rates in different economic environments such as in countries such as China, Brazil, Argentina and some countries in Africa where the economic environments are vastly different than in the Unites States.

Incremental borrowing rate at date of adoption

The incremental borrowing rate should be applied at the date of adoption which for public companies will at 1/1/2019. Companies should start to assess the incremental borrowing rates as early as possible and then update as needed for any changes to the terms and economic environments throughout 2018 so at 1/1/19, there is a clear and precise documentation of the methods used and assumptions made for the various rates.

Private company’s considerations

Because of the difficulty of determining the incremental borrowing rate, ASC 842 also provides a practical expedient to private companies by allowing those reporting entities to use a risk-free rate to determine lease classification. While the risk-free rate is certainly easier to determine than the incremental borrowing rate, the use of the risk-free rate could result in more leases qualifying as finance leases because the present value of the lease payments determined using the risk-free rate will be greater than the present value determined using the incremental borrowing rate. Accordingly, private company lessees will need to carefully consider the implications if they elect to use the risk-free rate.

Conclusion:

As companies start assessing the adoption and implementation, careful consideration of the incremental borrowing will need to perform because of the challenges in the new definition of the incremental borrowing rate under ASC 842. Companies should start having meaningful conversations with their respective treasury departments to determine the various rates that will need to be applied on 1/1/19.

 

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Topics: leasing, Leasing-Hot-Tips, SAPLeaseAdmin, ASC 842

Transitioning to ASC 842, Where are all your company’s lease documents?

Posted by David Ogletree on Tue, Jul 10, 2018 @ 02:33 AM

LeaseAdministration-HotTipThe new lease accounting standard ASC 842 is effective for public companies beginning January 1st, 2019. The primary purpose of the standard was to address the fact that most operating leases are deemed off balance sheet financing arrangements and currently are only disclosed via a company’s financial footnotes in the “Commitments and Contingencies” footnote.

Therefore, 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.

Primary issue is locating the entire population of active leases

Since companies were not required to capitalize leases in the past, record keeping for leases were often decentralized.  Most companies did not ever require operating leases to go through a formal capital committee review.  This meant record keeping and leasing terms were often undocumented.  The leasing related companies often transfer(sell) existing leases in their portfolio to other leasing companies making it even more difficult to track down leases.  The new standard is forcing companies to go through the process of locating all their operating leases.  For many firms this is an onerous task as some leases are decentralized and managed by their subsidiaries.  The following is a course of action to gather all the leases for an entity for ASC 842 accounting determination.

These five required steps to completeness and determination will help make sure that all leases have been analyzed for proper ASC 842 adoption.

Make sure all leases have been analyzed for proper ASC 842 adoption_tue-tip-10JUL

1) Commitments and Contingencies Footnote Schedule

Even though companies were not required to account for their operating leases on their balance sheet under ASC 840, there were required footnote disclosures.  The operating leases for future periods were disclosed in the “Commitments and Contingencies” section of their 10-K filings.  This disclosure would serve as a starting basis for all active operating leases.  The footnote would most likely contain a schedule of all future annual lease payments, lease terms, and minimum required lease payments. This schedule would be the beginning basis for the master lease schedule.

2) Leasing/Legal Department Inquiries

Some very large or lease centric companies have a Leasing department.  The Leasing department would likely have a listing of all approved leasing companies and all related contact information. The Leasing department would be the starting point of all lease negotiations and final lease execution. Inquire with leasing management as to their current active lease files.  This population of leases discovered in your initial inquiry of leasing management should detect leases not included in the “Commitments and Contingencies” footnote disclosure.  The Legal department is also a key contact regarding leases(and contracts) to make a formal inquiry.  The Legal department reviews, negotiates, and approves all legal documents.  The Legal department would keep a repository of all approved and executed legal documents.  Access to this contract repository will aid in the detection of “embedded leases”.  Embedded leases are leases under ASC 842 that are within a services contract not currently accounted for as an operating lease and therefore not included in the “Commitments and Contingencies” footnote.   

3) AP Sub-Ledger Analysis

As the company continues to navigate ASC 842 adoption, for completeness purposes, all payments in the AP sub-ledger in the trailing twelve months should be reviewed. These payment records should be reviewed in detailed for any vouchers that might relate to a lease and was not present in the 10-K or the Leasing/Legal department contract files.  Companies should query their detailed AP data for key words such as “lease”, “rent”, “building”, “equipment” and the like.  It would also be prudent to query the AP data for the entity’s common lease related vendors.   The leasing company vendor list would have been provided by Leasing management or AP management.  All leases detected through the AP sub-ledger should be matched against the list derived from the prior lease detection efforts.  All unmatched leases should be added to the original list to continue building the master lease schedule.  The next step in the AP analysis is reviewing payment files for any monthly recurring payments.  Trace these recurring payments to the AP voucher and compare to the master lease schedule.  Any voucher that is recurring and not already included on the master lease schedule would require further analysis to determine if it is indeed a lease. If the payment relates to a service contract, review the contract in the files of the Legal department, as discussed earlier to determine if there is an embedded lease.

 4) GL Detail Analysis

Next, a detailed listing from the general ledger for the rent expense account(s) should be examined and compared against the list derived from the all the previous lease detection efforts.  This is to detect payments or reclasses that are lease related but outside the AP sub-ledger.  This process may reveal wire transfers related to a lease or transactions that are lease related but not detected by the prior lease detection steps.

A detailed listing of the general ledger for property tax and insurance expense should also be examined and compared against the data derived from the previous inquiries.  This listing may detect property taxes and insurance expense for net leases not otherwise accounted for in the prior steps.

5) Treasury Department inquiry

All wire transfer payments should be reviewed for any payments that might relate to a lease.  Treasury departments routinely wire transfer large rent payments, especially related to leased real estate due to the exorbitant late fees charged in standard rental agreements. 

It would also be prudent to review the operating bank statement for wire transfers posting towards the end of the month that might relate to a lease. These wire transfers can be traced back to the wire transfer request documentation to determine if the payment is lease related.

Summary

As companies move through these steps to finalize their entire lease population, it is advisable to return to the Leasing and Legal department with the leases discovered that were not included in their original Leasing and Legal department inquiry.  This will allow these departments to update their corporate files and better manage the lease administration process.  The Leasing Department in collaboration with the Corporate Accounting department, may want to consider having a central repository software program for all the company’s leases, terms, minimum required lease payments, etc.  This will aid the Accounting department on a going forward basis as all new leases will be required to be analyzed for proper ASC 842 lease adherence. It will also allow for much stronger internal controls surrounding the leasing environment, and consequently, more accurate financial reporting.

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Topics: leasing, Leasing-Hot-Tips, IFRS16, 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

Advanced Analytics Provide the Keys to Compliance, Optimization and Transformation

Posted by David Fellers on Wed, Jun 20, 2018 @ 01:40 PM

If you think of today’s businesses as being like complex organisms, then it becomes easier to understand the critical role of advanced analytics in monitoring organizational health and supporting growth. Just as your body’s nervous system, immune responses and circulatory network provide continuous sensory feedback to identify problems and maintain healthy functioning, your company’s analytics processes are critical for organizational adaptation and survival.

In a very important way, adaptive analytics processes help companies cope with constantly changing external forces, such as new regulatory compliance requirements, market dynamics and competitive pressures.  Analytics are also critical for monitoring internal functions and change programs to provide context, transparency and agility for identifying issues and responding to potential problems before they become emergencies.

For example, major regulatory changes including Revenue Recognition (ASC 606 and IFRS 15), Lease Accounting (ASC 842 and IFRS 16), the European General Data Protection Regulation (GDPR), and others are all impacting compliance requirements for companies throughout the world.  Analytics are the key for successfully unifying internal processes and data to meet these external demands.

With so much external change going on, it’s vital that your organizational sensory and response systems be agile, transparent and comprehensive. To succeed, you need to simultaneously see the big picture and have the flexibility to drill down for detail across a widening range of compliance requirements.

At Bramasol, while working with a broad spectrum of companies across many industries on their compliance and financial transformation initiatives, it has become clear that “analytics” needs to be treated as a core strategy for overall success – with a comprehensive and highly adaptive approach.

Our go-to analytics technology stack spans the creation of purpose-built tailored solutions for issues such as Leasing and RevRec compliance, combined with user-friendly overall dashboards, such as the SAP tile-based analytics launch pad below.

TiledDashboard

Companies need end-to-end integrated solutions for compliance that fit seamlessly within existing operational and financial systems while providing the detailed information, audit trail, aggregation methodologies and advanced analytics to support disclosure reporting.  In addition, company management needs assurance that these end-to-end solutions are capable of being adapted and updated as compliance and disclosure requirements are fine-tuned or to meet special situations.

While there is no easy one-size-fits-all solution for all companies, it is useful to leverage core analytics technologies that can readily adapt to unique requirements while also meshing with existing legacy systems and laying the foundation for forward-looking business strategies.

For example, we’ve standardized on the SAP Digital Core, SAP Cloud Analytics and S/4HANA because these technologies provide flexiblity, scalability and performance for agnostically integrating and anlyzing data from virtually any existing systems and/or legacy data repositories. 

In addition, we’ve gone the extra step of creating purpose-built analytics and disclosure solutions for Rapid Leasing Compliance and Rapid RevRecReady Compliance.  By leveraging these targeted products, companies that just need quick and easy-to-deploy solutions can get up an running fast for basic compliance while also creating a solid foundation for adapting their analytics to meet future needs.

Comprehensive analytics are a key element in any company’s journey of Compliance, Optimization and Financial Transformation.  Beginning with advisory services and analytics integration, with pre-defined disclosure reports and purpose-built out-of-the-box solutions, these core analytics tools enable companies to comply quickly and then optimize their operational processes for driving transformational change.

Comply-Optimize-Transform

 

Only by creating a multi-faceted sensory and analysis strategy that holistically unifies the entire organization can today’s companies hope to stay healthy and compete in today’s global environment.

Learn more by visiting Bramasol’s Financial Transformation solutions.

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Topics: analytics, financial transformation

Join us for RevRec - Analytics Webinar and Leasing - Data Challenge Webinar next week

Posted by Bramasol Compliance Team on Wed, Jun 20, 2018 @ 07:00 AM

Disclosure and Analytics on SAP Analytics Cloud (Next Tuesday: June 26, 2018 - 10 AM PDT / 1 PM EDT)

At the end of the day, it is great to be compliant, but most companies aren't satisfied with just complying. They want to leverage compliance into competitive advantage. See how Bramasol's analytics platform provides you with insights that can drive meaningful action.

Learn about key metrics other companies are looking at and how to take advantage of real time views of Deferred Revenue, Impairments and POBs to understand how you can turn insights into action. Reserve your seat

banner-26JUNE-social-1

 

Leasing - The Biggest Challenge - Getting All the Data (Next Thursday: June 28, 2018 - 10 AM PDT / 1 PM EDT)

With hundreds of leases in dozens of countries and in multiple formats you need a way to gather all the data and load it into your leasing solution. But brute force won't get you there in time.

Bramasol, the leader in SAP Leasing, has developed a Data Abstraction and Migration process that will abstract all your data, prepare it, and load it into your lease accounting tool. Using OCR and Machine Learning, we can help you efficiently, accurately and quickly abstract and load data from hundreds or thousands of leases into your leasing solution. With only a few months to go, you need to get started today. Register Now

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Subscribe to our newsletter and stay updated about upcoming webinars and events or do check all of them at one place

Once registered feel free to raise your concerns to our experts during webinar, they are happy to help!

 

 

 
 

 

 

 

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Topics: weinar

Seven Lessons Learned from Adopting RevRec Standards

Posted by Bramasol Compliance Team on Tue, Jun 19, 2018 @ 04:02 AM

IgnitePossible-HotTip200x130A recent article in Accounting Today provides an interesting look back at lessons learned during the adoption of new Revenue Recognition standards, along with analysis of the implications for similar upcoming projects, such as implementation of new Lease Accounting standards.

Some key points in the article include:

"Public companies with a December 31 year-end have recently completed months-long (if not years-long) efforts on the adoption of ASC Topic 606, “Revenue from Contracts with Customers” (Topic 606). The adoption of Topic 606 has been one of the most time-consuming accounting projects taken on by most companies since Sarbanes-Oxley Act Section 404 over a decade ago. As Topic 606 effectively replaces all legacy GAAP rules around revenue recognition, it has far-reaching implications for all companies in all industry types.

Topic 606 is one of many planned changes in accounting literature that companies will be required to implement in the next few years. In the immediate horizon, Update 2018-01 – “Leases” (Topic 842) looms, which is applicable for most entities beginning in 2019. Similar to Topic 606, the provisions of Topic 842 are expected to have an impact on most companies from all industries. Accordingly, management should expect comparable obstacles in its adoption."

The article also notes that nearly half of private companies are still in the assessment phase of implementing the standard:

AccountingToday-SevenRecRecLessons

The seven Lesssons Learned and discussed in the Accounting Today article include:

  1. Planning
  2. Time
  3. Knowledge and Resources
  4. Internal Controls
  5. Disclosure
  6. Auditor Input
  7. Costs

Click here to read the full article in Accounting Today.

 

 

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Topics: FinancialTransformation-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

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