Blogs

Utilization a Critical PIECE of the Story

Every wave of innovation tends to generate opportunity for numerous new startup point technology solutions, often followed by a natural cycle of consolidation to integrate data and processes.  Without this natural cycle, we risk the rebuilding of silo’d data and processes and a loss of data governance and integrity.  One of the recent innovation waves in CRE is in space utilization, which has generated dozens of point applications and sensor solutions.

The Journey of Technology Innovators; from Experimentation to Pilots with Brookfield Global Integrated Solutions

A recent press release has announced that Brookfield Global Integrated Solutions and Trimble are launching the first mixed-reality program for property and facilities management.  But getting to the point of a program launch is not like shopping at a local market and picking some technology off the shelf.

What should you be doing to prepare for the FASB/IASB Lease Accounting changes?

If you haven’t done so already, you urgently need to form a cross-functional FASB/IASB project team — comprising key people from your real estate, finance and IT departments (and possibly other functional departments too). This team of experts should be tasked with thoroughly reviewing your existing lease accounting processes to identify the changes that need to be made.

Can your lease accounting software rise to the challenge?

The new FASB/IASB lease accounting standards will put a significant new reporting and forecasting burden on all lessees of real estate, vehicles and equipment. This, in turn, will place greater demands on the capabilities of an organization’s accounting technology.

How will the FASB/IASB Lease Accounting changes affect you?

The new FASB/IASB leasing model is expected to have a profound impact on a company’s overall capital structure as well as requiring a fresh approach to lease accounting and lease administration.

At the same time, adding future lease obligations to the balance sheet will have a major impact on leverage and liquidity ratios and could potentially affect your company’s credit rating.

What are the key FASB/IASB Lease Accounting changes?

The most dramatic change — both in the United States and around the world — is the requirement for all lease assets with terms longer than 12 months to be recorded as an obligation and a related asset on a company’s balance sheet.

Are the new FASB and IASB standards the same?

When FASB and IASB began their joint project to revise lease accounting standards, the intention was to produce a standard that would provide consistent accounting for leases on a global basis. However, they have not been able to fully achieve this goal.

What’s driving the FASB/IASB Lease Accounting changes?

In 2006, the FASB and IASB set out to revise lease accounting standards with the aim of giving investors a more transparent view of companies’ leasing activities. A decade later, the resulting changes are intended to improve the accuracy of financial reporting about lease liabilities.

The FASB/IASB Lease Accounting countdown has begun … are you ready?

“By failing to prepare, you are preparing to fail.”

― Benjamin Franklin

If your organization leases commercial real estate, your whole approach to lease accounting and financial reporting — and even the necessary capabilities of your accounting technology — will never be the same again after 15th December, 2018 and 1st January 2019. That’s when the new lease accounting standards set by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) respectively will come into effect worldwide.

2016 Conference & Trade Show Roundup

My role drives me to industry conferences all year long, but they are really grouped in two timeframes. Living in the northern hemisphere, I refer to them as the spring conference group (running between February and June) and the fall conference group (running between September and the US Thanksgiving holiday). Each group has about the same number of conferences, but the fall group packs them into about half the time frame. So while my preference might have been to provide recaps and updates along the way, it just was not happening this year.