Welcome to New Lease Accounting: Planning a Project for FASB and IFRS Compliancecostarmanager.com/wp-content/uploads/New-Lease... · 2017-10-20 · Welcome to New Lease Accounting:

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Welcome to New Lease Accounting: Planning a Project

for FASB and IFRS Compliance





New Lease Accounting:

Planning a Project for FASB

and IFRS ComplianceA 12 Step Guide for Project Management

Matt Waters, CPA, MBA, CGMA



About Today’s Presenter




1. Obtain a full understanding of ASC 842 and/or IFRS 16

2. Set a compliance timeline

3. Meet with a cross-functional group of leasing stakeholders

4. Organize a project team

5. Select a software solution for lease management and reporting

6. Compile a list of all leases

7. Evaluate compliance with existing ASC 840 accounting standards

8. Evaluate the HR impact and adjust staffing/training plans

9. Set internal accounting policies around leasing

10. Evaluate the process flow for leases and adjust to ensure efficiency

11. Review processes, software, policies and pro-forma results with auditors

12. Set up a sustainable process for managing leasing data

12 Steps for Lease Accounting Compliance


Planning a Project for FASB and IFRS Compliance



What Exactly Is a Lease Under ASC 842 and IFRS 16?

• Virtually all leases will need to be recorded on the balance sheet

• There are some complex changes in the new rules, and all

companies should leverage the knowledge and expertise of

subject matter experts for complete compliance

1. Obtain a full understanding of ASC 842 and/or IFRS 16





• Most companies will need to be in

compliance by the end of 2018 with

data going back to early 2017

• Many company-specific details of

the new standards can affect

compliance timelines

• Some companies may find it is

advantageous to adopt new

standards early

2. Set a compliance timeline





Groups to consider including

in stakeholder meetings and

communications:

• Real Estate

• Property Management and Lease

Administration

• Maintenance

• Logistics

• IT

• Procurement

• Legal

• Financial Planning

• Accounting

• Treasury

• Program or Project Management

3. Meet with a cross-functional group of leasing stakeholders



• Leasing has been a

traditionally decentralized

process

• Centralizing lease data

will be key to success

• Communicate early to

obtain buy-in from all

stakeholders



• Accounting – Due to the subject matter and the requirements for

financial reporting

• IT – Because the solution will likely involve implementing new software

• Program and Project Management – To add expertise in keeping the

project on track/budget

• Property Management and Lease Administration – Because of

interest in the solution selected and will most likely be responsible for

some data input

4. Organize a project team





If you’re already a CoStar Customer,

Congratulations! Skip this Step!

If not, critical questions to assess software:

• Standard, Ad Hoc and Custom Reports?

• Audit trails of data changes?

• Cost for future upgrades?

• Cost for unlimited users?

• SSAE16 audits annually for SOX?

• Ingrate with ERP and IWMS systems?

• Software recommended by CPA firms?

• Proven FASB and IASB functionality?

5. Select a software solution










Now it’s time for a POLL!






Don’t forget embedded leases!



• Preparing for the new lease accounting rules may expose

compliance issues with current requirements

• Keep materiality (financial significance in terms of GAAP) in mind

• Understand the impact to practical expedients

• Review with auditors

7. Evaluate compliance with existing ASC 840 standard





• Ensure accounting staff can

handle compliance tasks in

addition to regular duties

• Consider hiring additional

resources or consultants for

the project

• Consider training needs to

implement new processes

8. Evaluate the HR impact and adjust staffing/training plans





• New standard is more principles-based and will require

more robust company policies and controls

• Set new policies and discuss with auditors

9. Set internal accounting policies around leasing





• Consolidating and organizing lease data helps ensure lease data reliability

• Ensure leasing practices are efficient and eliminate waste

• An efficient lease management process can produce cost savings and better

negotiating leverage with vendors

10. Evaluate the process flow for leases and adjust to ensure efficiency





• Audit teams can add expertise for project success

• Reviewing early with audit associates can save time during the

next annual audit

11. Review processes, software, policies and pro-forma results with auditors





• Leasing will continue to be a valuable practice for business operations

• Existing leases will need to be maintained and new leases will need to

be set up

• Give some thought now to a sustainable and efficient process

12. Set up a sustainable process for managing leasing data





This guide – co-authored by the

former lease accounting manager

with the largest home improvement

retailer in the U.S. – offers

organizational leaders practical,

real-world insight on how to create a

lease accounting compliance plan.

www.costarmanager.com

Get the 12 Step Project Plan White Paper





[email protected]




Planning a Project for FASB

and IFRS ComplianceA 12 Step Guide for Project Management


Thanks for joining

us today!



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New Lease Accounting: Planning a Project for FASB

and IFRS Compliance

Documents

Welcome to New Lease Accounting: Planning a Project for FASB and IFRS Compliancecostarmanager.com/wp-content/uploads/New-Lease... · 2017-10-20 · Welcome to New Lease Accounting: