The newly released FASB accounting standards will soon take effect, and that means some major changes in balance sheets and accounting statements which will spill over to lease abstracts. Is your company ready for the FASB changes? If not, we can help put you at the top of the FASB readiness index.
We have a team of CPAs and accounting graduates who have been tracking the FASB and IASB developments and understand thoroughly the implications of the new requirements. Our team is comprised of experienced lease analysts, abstractors and lease auditors who have the knowledge to assess your existing leases and help you understand the impact of the new standards.
We have 10+ years of experience in abstraction and audit of leases of multiple kinds including financial, non-financial, commercial, equipment, residential and regulatory.
It took FASB years to come up with the new accounting standards, so it's no surprise that the compliance seems so overwhelming! We can make it easier for you by helping you design a process for achieving FASB compliance for your lease abstracts. Having a process in place will eliminate chaos and confusion for your accounting teams and make the transition to the new standards smoother.
We work with you at every level to help ensure your lease abstracts adhere to the new FASB compliance requirements from setting up a process for the transition to ensuring the compliance effort is complete. We will first take an inventory of your leases, assess them in light of the new FASB compliance, determine the impact of the regulations on your existing leases, and then provide a timeline for the transition. After the initial transition and compliance stage, we will work with you to ensure sustained adherence to the FASB lease accounting standards.
The transition is very cumbersome and confusing because it impacts balance sheets and financial statements heavily. It is also retrospective because it involves restating income, assets and liabilities over the previous 2 years.
The transition is a one-time process, so hiring in-house resources for the project is not cost effective.
Complete, concise and accurate abstracts of all leases becomes a must because it is too tedious and time consuming to read through every lease in its entirety and determine its effect on the company's balance sheet and financial statements.
Do you have a complete inventory of all your leases? Real estate leases have been in the spotlight of all FASB discussions basically because of their high estimated value. But, when you are making a lease inventory make sure you also consider the ones that are non-real estate. Examples include machinery and equipment, because as per the new FASB regulations, when you sign a lease, you are 'buying' the right to use the asset so everything must be accounted for, including the non-real estate ones. Our data research team can help you list out all your leases and have an inventory ready.
To implement FASB lease accounting changes successfully, you will need easy access to all data related to the leases and all their amendments, correspondence, appendices and receipts. So, you need to make sure you have all these documents in order and that they are tagged and easily accessible. Tagging your lease documents will come in extremely handy because multiple lease clauses will have to be revisited and perhaps re-abstracted. Tagging allows for easy reference and access to the various clauses in the abstract. Our lease specialists can identify the key fields and tag them so they are ready for your reference.
FASB compliance stipulations mean having to analyze all your lease data in-depth. It would be nearly impossible to analyze all the key clauses for each lease without an abstract. Our lease abstractors can provide you with accurate and comprehensive abstracts of all these key fields so it's easier to determine the 'FASB effect' on your leases.