For every organization that’s purchasing lease accounting tools, there are many things to consider; and data security is a major concern. We’re talking about your company’s financial records, so rock-solid…
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The Visual Lease blog
Managing lease escalation costs is one of the most complex and important responsibilities for corporate real estate executives. These costs, which often represent expense pass-throughs from the landlord to the…
From time to time clients raise the question of the difference between corporate real estate and facilities management. In essence, they’re asking why we have two different professional designations since they both seem to have the same responsibilities. But the two professions have distinct differences and responsibilities. Here we explore these differences and attempt to bring clarity to the issue.
Combining a lease audit service with a lease management system, such as Visual Lease, offers compelling benefits for organizations managing commercial leases. Commercial leases are complex legal documents, each with…
What are rent concessions? Rent concessions are discounts, incentives, or other benefits provided by landlords to tenants. Landlords sometimes offer rent concessions to entice tenants to sign a new…
Understanding Accrued Rent & Deferred Rent Rent is one of the largest expenses that companies face, and it’s critical to properly account for it. Under ASC 842, rent is accounted…
In attempt to become compliant with lease accounting standards, particularly ASC 842 and IFRS 16, there are many intricate details that accountants often have questions about. Today we’ll address accounting…
From time to time clients raise the question of the difference between corporate real estate and facilities management. In essence, they’re asking why we have two different professional designations since they both seem to have the same responsibilities. But the two professions have distinct differences and responsibilities. Here we explore these differences and attempt to bring clarity to the issue.
There’s always a dispute within the organization aboutthe issue of chargebacks, particularly facility occupancy costs. Department heads typically question the need for charging back occupancy costs, since they don ‘t feel they have any direct control over these overhead costs. But occupancy costs are directly linked to staffing, so it’s logical to burden a department with its share of occupancy costs relative to staffing levels. The argument for chargebacks centers on the need for reinforcing cost containment, as well as maintaining a level of fairness in the organization.
In the realm of lease accounting, particularly under the guidelines of ASC 842, understanding what constitutes Initial Direct Costs (IDCs) is crucial. IDCs are expenses that a lessee incurs directly…
