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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

ASC 842: FASB provides an additional optional transition relief for companies

Posted by Julio Dalla Costa on Tue, May 22, 2018 @ 03:19 AM

LeaseAdministration-HotTipOn January 5th, 2018, the Financial Accounting Standards Board (FASB) proposed adding an optional transition method and another practical expedient for lessors to Accounting Standards Codification (ASC) 842, Leases, to reduce the cost and complexity of implementing the new standard.

With the proposed transition option, the FASB is responding to concerns raised by entities, particularly those that plan to implement new systems to comply with the guidance. These entities said that the current requirement to apply the new leases standard to the comparative periods presented in the year of adoption would be more costly and complex for them to implement than the FASB initially anticipated. 

FASBlogo

On March 7, 2018, the FASB approved the changes to the comparative reporting transition guidance, providing an optional transition method when adopting Topic 842.

So, what does this mean?

For many companies who recently implemented ASC 606 and used the modified retrospective approach had to recast their financial statements to the earliest periods presented. This meant that they had to go back two years to the earliest reporting period presented and incorporate the changes into the transition entry to retained earnings as the date of implementation.

At its November 29 meeting, the FASB proposed allowing entities the option to instead apply the provisions of the new leases guidance at the effective date (e.g., January 1, 2019), without adjusting the comparative periods presented. In the case of the adoption of ASC 842, if companies were to adopt on 1/1/2019, that means that companies would have to recast fiscal years 2017 and 2018 for the adoption of ASC 842.

For example, a calendar-year entity that adopts the standard on 1 January 2019 and presents two years of comparative financial statements applies the transition provisions on 1 January 2017 (i.e., the beginning of the earliest comparative period presented). Under the proposed transition method, the entity would apply the transition provisions on 1 January 2019 (i.e., the effective date).

Under the proposed new method for transition, companies will be allowed to continue using and presenting operating leasing under ASC 840 and then prospectively adopt ASC 842 on 1/1/2019. The proposal could simplify transition to the new guidance. For example, a lessee would not have to measure and recognize leases that expired prior to the effective date or consider the effects of each modification for leases that were modified more than once during the comparative period presented. Under the proposed transition method, entities could opt to continue to apply the legacy guidance in ASC 840, Leases, including its disclosure requirements, in the comparative periods presented in the year they adopt the new leases standard.

Entities that elect this option would still adopt the new leases standard using a modified retrospective transition method, but they would recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than in the earliest period presented. Entities would still be required to apply different recognition and measurement requirements in the post-adoption period to leases they entered before adoption and those they enter after adoption.

Group of three practical expedients

In addition to the optional relief proposed by the FASB, there was already the “group of three” practical expedients that was previously proposed and approved. The practical expedients apply to all leases in place at the time of transition. However, the practical expedients must be applied as a package.

The practical expedients are:

  • An entity need not reassess whether any expired or existing contracts are or contain leases.
  • An entity need not reassess the lease classification for any expired or existing leases (that is, all existing leases that were classified as operating leases in accordance with Topic 840 will be classified as operating leases, and all existing leases that were classified as capital leases in accordance with Topic 840 will be classified as finance leases).
  • An entity need not reassess initial direct costs for any existing leases.

ASC842-TransitionExpedients

In addition, the standard provides this practical expedient which may be elected separately from the above:

An entity also may elect a practical expedient, which must be applied consistently by an entity to all its leases (including those for which the entity is a lessee or a lessor) to use hindsight in determining the lease term (that is, when considering lessee options to extend or terminate the lease and to purchase the underlying asset) and in assessing impairment of the entity’s right-of-use assets. This practical expedient may be elected separately or in conjunction with the practical expedients noted above.

Summary:

By the additional optional transition method as well as the practical expedients, companies are being provided with significant relief for the adoption of ASC 842. However, companies that rely extensively on leases for operating assets, the transition is likely to be labor intensive even when applying the practical expedients.

 

 Rapid Leasing Compliance Solution Click Here to Learn More

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Topics: leasing, FASB, Leasing-Hot-Tips, ASC842, SAPLeaseAdmin

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

Join Bramasol at SAP Aerospace & Defense Innovation Days

Posted by Bramasol on Fri, Mar 30, 2018 @ 07:54 AM

Plan to join Bramasol at SAP Aerospace and Defense Innovation Days, April 9-11, 2018 in Boston, MA where you can learn the latest about our technology innovations and solutions for challenges facing the Office of the CFO.

We are helping to lead the discussion with over 200 A&D industry peers to drive innovation and identify growth opportunities. You will discover how to make sense of technology, and learn from a complete program of showcases, presentations, and customer sessions, along with invaluable networking opportunities with SAP executives and experts, customers, and partners. 

As leaders in compliance solutions, Bramasol will be showing the latest updates on RevRec (ASC 606 and IFRS 15) and Lease Accounting (ASC 842 and IFRS 16), as well as purpose-built packages and adaptable technologies for optimizing compliance within overall Financial Transformation solutions.

We will be demonstrating the newest releases of SAP Revenue Accounting and Reporting (RAR) and SAP Lease Administration by Nakisa.  In addition, you can see our purpose-built, turnkey packaged offering, RevRec Ready Rapid Compliance Solution for disclosure reporting.

Looking forward to seeing you in Boston and discussing  your specific Compliance, Optimization and Financial Transformation needs.

9-11-Apr-2018-event-banner-420x300

 

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Topics: SAP Revenue Accounting and Reporting, financial transformation, SAPLeaseAdmin

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