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Lease Accounting Changes: The Impact to the Hospitality Industry
Lease accounting, particularly as it relates to lessee accounting, has been a controversial topic for a number of years. The fact that a lessee under current generally accepted accounting principles (“GAAP”) can execute a contract to make legally binding payments over a period of time, structure the contract so that it is classified as an…
10 Ways to Optimize Your Lease Portfolio As A Lessee
As a lessee, optimizing your lease portfolio involves strategically managing your leases to maximize efficiency, reduce costs, and minimize risks. Here are some steps you can take to optimize your lease portfolio: 1. Consolidate and centralize lease data: Start by gathering all your lease agreements and centralizing them in a lease management system or database….
Trends Shaping Lease Accounting & Management: A Glimpse into the Future
The world of lease accounting and management is ever-evolving, with innovative approaches surfacing to match the shifting economic landscape. Understanding these trends is essential for entities dealing with leases, especially with the implementation of standards like ASC 842, GASB 87, GASB 96 and IFRS 16 that have fundamentally changed lease accounting. One of the most…
10 Common ASC 842 Lease Accounting Mistakes
Here are some common mistakes lessees make when dealing with lease accounting according to the ASC 842 standards and how iLeasePro can easily help you avoid making them. 1. Lease Misclassification: Under ASC 842, leases should be classified as either operating or finance leases. Misclassifying a lease can significantly impact a company’s financial statements. 2….
ASC 842 Lease Accounting Example Scenario
The ASC 842 Lease Accounting Standard was introduced by the Financial Accounting Standards Board (FASB) to establish new guidelines for lease accounting. Understanding how to build an ASC 842 Lease Accounting amortization schedule and record ASC 842 Lease Accounting journal entries is crucial for accurately reporting lease transactions. In this blog, we will walk through…
iLeasePro Releases Auth0 Integration For Enhanced User Experience
iLease Management LLC, a leading provider of the iLeasePro ASC 842 lease accounting and lease management solution, announced today the release of enhancements to the user experience of its iLeasePro platform. iLease has released a new security feature that integrates Auth0 to streamline the authentication process and further enhance data security for its users….
Critical Date Notifications: Vital for Lease Compliance & Risk Management
In lease management, critical date notification refers to the process that alerts the involved parties about important dates and deadlines related to a lease agreement. These notifications help ensure that both the landlord and the tenant are aware of upcoming crucial dates, such as lease expiration, rent increases, option exercise periods, renewal deadlines, or any…
ASC 842 Lease Accounting Audit: An Auditors Guide to Evaluate ASC 842 Lease Accounting Compliance
When an auditor evaluates a company’s implementation of ASC 842 lease accounting, they generally follow a series of steps to ensure compliance when performing a lease accounting audit. These steps may vary slightly depending on the specific circumstances of the company and the auditor’s approach. However, a general process is as follows: Understand the entity’s…
Apply the Correct ASC 842 Lease Classification
The ASC 842, or Accounting Standards Codification Topic 842, is the accounting standard for lease accounting in the United States. It was issued by the Financial Accounting Standards Board (FASB) to improve transparency and comparability of financial statements by recognizing lease assets and liabilities on the balance sheet. Under ASC 842 lease classification, leases are…
Implementing Top 10 Lease Accounting Internal Controls to Ensure Success
Implementing new processes and internal controls is crucial for ensuring accurate and timely lease accounting under the new standards. Here are some key processes and controls to consider: Lease identification and inventory: Establish a process to identify and track all lease agreements, including embedded leases within service contracts or other arrangements. Maintain a comprehensive lease…
Unlocking Cost Savings with Cloud-Based Lease Management Solutions: A Smart Investment
The property management industry is continuously evolving, driven by advancements in technology and the ever-changing needs of property owners and tenants. One significant development in recent years is the increasing adoption of lease management solutions. These solutions enable property managers to streamline their operations, offer enhanced services to their clients, and ultimately drive greater success…
Maximizing Property Management Efficiency: The Importance of a Centralized Lease Data Repository
A centralized lease data repository is critical for a property manager for several reasons: Efficiency: A centralized system consolidates all lease information in one location, making it easier for property managers to access and manage data. This saves time and effort, as they no longer need to search through multiple sources or physical files. Accuracy:…
Unlocking Revenue Growth: How CPA Firms Can Boost MRR with ASC 842 Lease Accounting Solutions
CPA firms can increase their Monthly Recurring Revenue (MRR) by providing ASC 842 Lease Accounting solutions for private company clients. By offering expert guidance and services related to the implementation and ongoing management of ASC 842, CPA firms can create new revenue streams and foster long-term client relationships. Here are some strategies for CPA firms…
The Future of Property Management: Embracing Lease Management Solutions for Client Success
The property management industry is continuously evolving, driven by advancements in technology and the ever-changing needs of property owners and tenants. One significant development in recent years is the increasing adoption of lease management solutions. These solutions enable property managers to streamline their operations, offer enhanced services to their clients, and ultimately drive greater success…
GASB 96 - Subscription-Based Information Technology Arrangements (SBITAs)
GASB Statement No. 96, Subscription-Based Information Technology Arrangements (SBITAs), was issued in May 2020. The statement establishes guidelines for state and local governments for accounting and financial reporting of subscription-based information technology arrangements (SBITAs), which are essentially cloud computing and other IT service arrangements. GASB 96 is effective for fiscal years beginning after June 15,…
Navigating the Risks: The Challenges of Implementing AI in Lease Accounting
While AI offers numerous benefits for lease accounting, there are also potential risks and challenges that organizations should consider when implementing AI-driven solutions. Some of the risks associated with using AI in lease accounting include: Data privacy and security: AI systems require large amounts of data to function effectively. Ensuring the privacy and security of…
Revolutionizing Lease Accounting: The Transformative Impact of Artificial Intelligence
AI will likely have a significant impact on lease accounting in several ways, as it has the potential to enhance efficiency, accuracy, and compliance. Some possible effects of AI on lease accounting include: Automation of data entry and analysis: AI can process large volumes of lease agreements and extract relevant data points, such as lease…
8 Key Risks of Relying on Spreadsheets for ASC 842 Lease Accounting Compliance
While spreadsheets are widely used for various tasks in accounting, they may not be the ideal tool for complying with the ASC 842 lease accounting standard. Checkout our video on this topic. The ASC 842 standard, which was introduced by the Financial Accounting Standards Board (FASB), aims to increase transparency and comparability of financial statements…
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