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.
Being able to fully comply with the new FASB/IASB requirements will depend on having instant access to comprehensive, pristine data within a system that can manage analyses and reporting effectively. As a result, many existing lease accounting systems may need to be updated, or even replaced altogether because they’ve been made obsolete by the new compulsory rules.
To help modernize the management of your lease portfolio and lease accounting, you will need a future-proofed system capable of rapidly identifying, compiling, processing and analyzing all of the important lease data that the financial reporting and accounting departments will require. Paper documents and spreadsheets will in almost all instances no longer be sufficient.
Increasing the efficiency and accuracy of your data storage, data collection and data abstraction processes should be a top priority. And your accounting software must be comprehensive enough to be able to perform complex calculations — including the comparative balance sheet calculations required during the ‘transition’ period leading up to adoption of the new standard.
After consulting with many client organizations likely to be affected by the FASB/IASB changes, Trimble has put a great deal of research and development investment into enhancing its Manhattan lease management and lease accounting modules.
Manhattan is a market-leading integrated real estate and workplace management software application for managing the complete real estate and facilities lifecycle — from financial management and budgeting, to project management and real estate and portfolio management, through to capital asset planning, space planning, space scheduling, operations and maintenance.
Significantly, Manhattan was designed and built with financial management and financial accounting at its core. That’s why Manhattan is currently the only solution with a Financial Management module which uniquely provides an embedded sub-ledger that supports all leased assets with the functional capabilities of an enterprise resource planning (ERP) General Ledger. This is a capability that will be essential to ensure full compliance with the new reporting standards.
Manhattan’s advanced software is now able to support lessees during the complex FASB/IASB preparatory, pre-transition, transition and final adoption periods … and beyond.
In fact, Manhattan has been specially designed to support retrospective processing of all lease transactions regardless of the date of impementation. The software is uniquely able to support both the future FASB/IASB requirements and the current FASB/IASB standards concurrently. This means Manhattan can be implemented after the start of the transition period, and then retrospectively process transactions in accordance with the new standards.
Dedicated to helping you meet the new US GAAP and IFRS Lease Accounting Standards, the Trimble Manhattan team has been thoughtful and deliberate in its development of the new Manhattan FASB/IASB functionality.
To learn more, please visit 'Are you on the road to FASB/IASB compliance?'