Have you planned your lease accounting compliance timeline yet?
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The deadlines are drawing near for lease accounting compliance, with the GASB 87 compliance deadline set for July 2021, ASC 842 slated for January 2022 and the IFRS 16 date varying depending on statutory requirements. With the clock ticking, have you developed and implemented an effective foundation for compliance?
RSM US LLP’s Troy Sheehan recently took part in a presentation about Visual Lease, a lease accounting software solution. This presentation detailed a comprehensive approach to compliance and the important role technology solutions can play.
A technology solution can help to centralize all leases onto a single platform, perform calculations, assist with lease administration and provide necessary information for reporting. These helpful tools also provide additional benefits, including:
- Calculating future lease liability
- Separately accounting for lease and nonlease components
- Tracking terms including renewals, options, expirations, etc.
- Generating journal entries
- Reporting in parallel under ASC 842, IFRS 16 and GASB 87
Lease accounting software is not a standalone solution, as compliance will still require human intervention to abstract leases, interpret guidance, resolve data integrity issues and perform other critical tasks. However, a technology platform can greatly increase the efficiency and accuracy of lease accounting efforts, simplifying complex lease scenarios and introducing a fast and reliable path to compliance.