Using Software To Simplify FASB and IASB Lease Accounting Changes: Eight Critical Questions When Selecting A Solution

Published 30 June 2017 by Susan Clarke

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Executive Summary

Under new accounting standards issued by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), organizations need to bring all leases on balance sheet by capitalizing the leased assets. This new requirement, which will be compulsory in 2019, will create significant administration challenges for finance and real estate teams at large multi-site firms that can hold hundreds of property leases and thousands of equipment leases. This report reviews the role for software solutions to help organizations with applying the changes consistently, quickly and at scale. The report provides building tenants, owner-occupiers and real estate investors and asset managers with eight critical checkpoints they need to consider before investing in a software solution to help manage the upcoming changes.

Table of contents

Using Software To Simplify FASB And IASB Lease Accounting Changes: Eight Critical Questions When Selecting A Solution
The New Lease Accounting Standards Start This Year And Will Be Compulsory In 2019
Software Solutions Can Take The Pain Out Of Putting Leases On The Balance Sheet
Eight Critical Check Points When Selecting A Software Partner To Support New IASB and FASB Lease Accounting Standards 

Table of figures

Figure 1. Key Differences Between US GAAP And IFRS Lease Accounting Requirements

Organisations mentioned

Accruent, ARCHIBUS, Bouclair, Deloitte, Drivers Jonas, DXL, Bashas’ Family of Stores, Fell Lease Administration, Financial Accounting Standards Board (FASB), FM:Systems, IBM, International Accounting Standards Board (IASB), JLL, Kira, LeaseQuery, LEVERTON, Lucernex, MCS, Planon, ProLease, Qube Global Software, Suburban Propane, Trimble, World Federation of Exchanges.

About the author

Susan Clarke

Principal Analyst

Susan is a Principal Analyst in the Verdantix Real Estate, Energy and Facilities Optimization Practice. Her current research agenda focuses on integrated solutions for real estate management and energy services. Susan has eight years of experience in technology research. She holds a MSc from the University of London in Sustainable Development.

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