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5 Best Practices To Get Your CRE Leases Abstracted & FASB Ready

5-Best-Practices-To-Get-CRE-Leases-Abstracted-and-FASB-Ready

Lease abstraction is the process of summarizing key, high-level information of a lease. A lease abstract gives you exactly what you need for due diligence, in a concise format. But abstraction of leases is more like an art. It requires skill and patience.  The main challenge arises when a landlord or tenant has a huge portfolio of leases and they don’t have a solid process to abstract leases effectively. Moreover, FASB ASC 842 requires abstraction of as many as 55 data points from leases to meet their compliance requirements. And without an abstract, it will be tedious and time-consuming to analyze all the key clauses for each lease. (more…)

Equipment leases and the impact of the new accounting standards

impact-of-the-new-accounting-standards

With the new accounting standards, equipment leases with a duration of more than 12 months must be recognized on the balance sheet. This change in financial reporting has had a huge impact on companies who are not prepared to handle the mammoth task of sifting through the equipment leases and making the necessary transition.(more…)

4 tips to help boost your FASB compliance readiness

4-tips-to-help-boost-your-FASB-compliance-readiness

The new accounting standard has brought with it the need to adopt new technologies as well as modify existing ones. It also raises concerns about the abstraction of additional lease clauses and the need to change business processes. As a result, companies, both private and public, are facing numerous challenges surrounding the new accounting standards. Here are some tips that will facilitate the implementation process.
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