Our System

Lease Accounting

A complete lease accounting solution requires not only calculating present values and generating amortization schedules, but addressing the accounting issues created due to ongoing changes within the lease portfolio through the normal course of business under the new FASB and IASB standards.

Also required are the calculation and export of journal entries and the adjusting entries resulting from re-measurement, impairment, or late or inaccurately entered base data. This need to address ongoing changes, combined with the sheer scale of managing the data for portfolios consisting of thousands of leases is enough to break most systems.

Our system easily handles accounting throughout the full life cycle of a lease via the following features:

  • Support for all asset types
  • Documenting of company specific lease analysis process with unlimited configurable tasks, templates, and types, each with unlimited custom fields
  • Separation of duties for lease transaction management, lease administration, and lease accounting functions with highly granular security groups
  • Engineered to avoid disrupting the current lease administration process while retaining accounting control of all data changes to manage and record the accrual basis accounting impact exclusively through open fiscal periods
  • A robust subsidiary ledger supporting general ledger carrying amounts of lease liabilities and right of use assets
  • Income statement approaches for both straight-line and front-loaded lease classification models
  • Unlimited lease accounting scenarios for each lease expense for reporting on a single lease across multiple jurisdictions
  • Unlimited pro-forma scenarios for initial lease valuation and transaction management analysis
  • Bulk data uploads, inputs, and updates - including capitalization parameters
  • Support for troublesome lease attributes such as non-standard lease intervals (e.g., English Quarters), mid-month rent bumps, prorated starting and/or ending periods, and many others
  • Present-value discount calculation options by the actual lease payment frequency or monthly
  • Right of use amortization expense calculated monthly
  • Journal entries generated by fiscal period for all leases, regardless of payment frequency or selected discount period, for the accurate and timely accrual of non-monthly leases (annual, semi-annual, quarterly)
  • Generation of original and adjusting journal entries for all scenarios, and subsequent changes to scenarios and underlying leases
  • Journal entries built to client specification for easy upload into general ledger
  • Extensive fully allocated journal entry batching across the organization with file formats compatible with all major general ledger system upload specifications
  • Robust searching and reporting with both detail and summary levels
  • Footnote disclosure reporting