Rapid Adoption With Visual Lease

Recommended by the “Big 4” and major global accounting firms, the Visual Lease platform will ease your compliance of the new lease standard.  Your asset accounting will be rapidly automated with our fully integrated FASB ASC 842 and IASB IFRS 16 Modules:

  • Fastest journal entries
  • Operating vs. Capital Lease Tests
  • Calculation of Right Of Use Asset, Liability, Principle Payment and Interest Payment schedules.
  • Disclosure Reports
  • Drill-Down report builder
  • Integration with ERP systems for AP or GL processing, including Oracle, SAP & 20+ others.
  • APIs for 750+ applications to migrate data quickly and connect your enterprise

Questions to Ask

Here are some questions you should be asking now to get prepared for the transition:

  1. How does the new standard affect the current lease portfolio? Specifically, what is the total asset value (ROU) and liability value after recalculating the company’s lease portfolio?
  2. How will these new values affect the company’s key financial indicators such as ROA (return on assets), Debt to Equity Ratio, and related tax effects?
  3. What enhancements are needed to the lease management system to comply with the new standard?  
  4. What methodologies should be employed to evaluate future lease/buy decisions in light of the new standard?
  5. What is the schedule and budget for implementing the necessary changes to lease management systems, lease accounting, and training of personnel?

Read our Whitepaper:
The Lease Accounting Tsunami — Are you prepared to weather the storm?

Download Now
mike

Bell’s Blog: See what Mike Bell has to say about the FASB/IASB changes

Recent Posts / View All Posts

Lease Standard Update – Unintended Consequences?

| Bell's Blog, FASB/IASB, Lease Audit | No Comments
Leasing is perhaps one of the most pervasive forms of financing in the global economy, yet traditional accounting standards remain essentially silent on the off- balance sheet treatment of leasing....

The New Leasing Standards: A Closer Look at the Two Different Accounting Methods

| FASB/IASB | No Comments

Both the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) released their respective new leasing standards in the first quarter of 2016, but they are not the same.

The IASB Releases New Lease Standard, the FASB to Follow Soon

| FASB/IASB | No Comments

The long awaited new lease standard has arrived! The International Accounting Standards Board (IASB) released its version of the new lease standard last week with implementation scheduled for early 2019.  The US accounting standards board (FASB) is expected to release its version shortly with implementation to follow soon after IASB’s.

Five Challenges Facing Corporate Real Estate Executives in 2016

| 2016, FASB/IASB, IT, Staff, Strategic Planning | No Comments

With the New Year it’s a good time to take stock of the corporate real estate domain and consider the challenges facing the managerial profession responsible for the corporation’s real estate assets and services in the year ahead. Here are five major challenges if dealt with effectively will determine in part the success of corporate real estate in 2016.

 

The Financial Accounting Standards Board (FASB) and its international counterpart (IASB)  released the final version of their Lease Accounting Standards on February 25, 2016, with implementation required by 2018-2019.  Essentially the standard requires lessees to recordleases on the balance sheet as both liabilities and assets (Right of Use or “ROU” Assets). These include both real estate as well as equipment leases.

This change will have a profound impact on a company’s capital structure, leasing practices, and operational processes. It has been estimated that the accounting change will add no less than 1.35 trillion dollars of assets and liabilities to company balance sheets. In a recently published survey by IBM, 92% of companies surveyed indicated that they were not prepared to implement the standard, either in terms of lease information systems, employee training, or leasing practices and policies.