The Financial Accounting Standards Board (FASB) and the international Accounting Standards Board (IASB) recently announced the release of new accounting standards that define how organizations must account for leases. The release of these new leasing standards is more than just an accounting change. It is an event that will have profound implications on lease/buy decisions, internal process coordination and financial reporting. Companies need to think about new processes, new systems, and new controls.
The spreadsheets that many companies use to track and calculate lease payments are no longer sufficient as they do not:
Allow the close collaboration of information between the lease administrator, lease accountant and fixed asset accountant.
Provide adequate controls to ensure accurate calculations.
Automate the complicated financial postings that must be made to comply with the new standards.
Provide a mechanism to calculate multiple GAAP versions from the same abstracted lease data.
SAP Real Estate Management is a robust fully functional Real Estate Management Solution that provides accounting, administrative and reporting capabilities and is ASC 842 and IFRS 16 compliant .