What is ASC 842/IFRS 16? How do you maintain the required standards? Can lease accounting software help? These are all common questions commercial real estate professionals have, so if you find yourself curious about the same details, this article is for you.
Let’s define lease accounting compliance and what it means for CRE pros, then discuss the benefits of lease accounting software and how it can help with compliance.
Lease Accounting Compliance, Defined
First, let’s answer the question you came here for: what is lease accounting compliance? It started when the Financial Accounting Standards Board (FASB) issued its long-anticipated standards update in 2017. While there was an initial furor of press coverage, substantive analyses went by the wayside given that implementation wouldn’t occur until December, 2018 at the earliest and December, 2019 for certain types of companies. Now, we’re in 2021 and consequences/penalties for lease accounting compliance are still being determined, even though January 1, 2021, was the compliance standard deadline.
Common Lease Accounting Compliance Questions
Now that you know what lease accounting compliance is, how do you go about maintaining it? This FASB lease accounting checklist article illustrates the different phases associated with lease accounting compliance and how to implement a solution like lease accounting software. You might still have questions, however. Here are some common queries we receive related to lease accounting compliance:
- Can CRE software only do lease accounting? Not if you choose the right one. With Quarem, for example, you’ll be getting more than just accounting software. You’ll get a tool to track ASC 842/IFRS 16 compliance and all the essentials you need to ensure that you’re compliant, but there are lots of other features as well (e.g. reporting, task management, data cleanup, lease abstracting, etc.).
- Who can benefit from lease accounting software? Those looking for a robust solution for ASC 842/IFRS 16 compliance can benefit from lease accounting software. Whether you’re an individual, a team or a company, you’ll enjoy lots of benefits.
- Where can I get expert advice on lease accounting compliance? Lease compliance is a complex subject, so we can only provide guidance on how to best use the ASC 842/IFRS 16 feature in the software. (We aren’t qualified to provide expert advice or counseling beyond that.) It’s best to consult an accountant or other qualified professional when looking for guidance on how to handle FASB/IFRS compliance.
Can Lease Accounting Software Help with Compliance?
Yes! Again, the tool has an ASC 8442/IFRS 16 feature and can help you with FASB/IFRS compliance. This standout feature of the tool can set you up for success, especially when supplemented with advice from an accountant or qualified professional. The best way to see how it can help? Test drive it for yourself.
If you’re interested in a software solution for lease accounting compliance, request a demo of Quarem today.