new lease accounting standards -...
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NEW LEASE ACCOUNTING STANDARDSEXPERT PANEL WEBINAR
New Lease Accounting Standards - Expert Panel Webinar
Meet Our Expert Panelists
BruceConway
MarkKoppersmith
ScottDunnihoo
Colleen Tigges
Vice PresidentOperations
DirectorProduct Management
DirectorCustomer Service
DirectorSolutions Consulting
New Lease Accounting Standards - Expert Panel Webinar
Question #1
What type of General Ledger entries need to be made?
New Lease Accounting Standards - Expert Panel Webinar
General Ledger Updates
Commencement Midterm Event End of Term
Monthly Entries
New Lease Accounting Standards - Expert Panel Webinar
Question #2
What are the economic advantages of equipment lease
versus ownership?
New Lease Accounting Standards - Expert Panel Webinar
What are the Economic Benefits of Leasing?
Lease Buy
New Lease Accounting Standards - Expert Panel Webinar
Question #3
Has the SEC released any guidance related to the implications of the 5 year table (Selected Financial Data) in an entity’s 10-K upon adoption in 2019?
New Lease Accounting Standards - Expert Panel Webinar
The Five Year Table
Example
New Lease Accounting Standards - Expert Panel Webinar
Question #4
What should we set aside from a resource and budget perspective to
handle this project?
New Lease Accounting Standards - Expert Panel Webinar
Resources and Budget
Implementation On-Going
ProjectResources
DataCollection
ProgramResources
Software/Technology
New Lease Accounting Standards - Expert Panel Webinar
Question #5
What are the best software options for lease accounting?
New Lease Accounting Standards - Expert Panel Webinar
What Software Options are Available?
Real EstateAdministration
LeaseAccounting
IT, Fleet AssetManagement
ERP(Customize)
SoftwareOptions
• Construction• Space//Facility Planning• Building Maintenance• Lease Administration
• Asset Tracking• Maintenance & Repair• Lease Administration
• Fixed Asset Accounting• General Ledger• Procurement
• Real Estate, IT, Fleet, etc.• Asset Level Sub-Ledger• Generates Debits/Credits
New Lease Accounting Standards - Expert Panel Webinar
Question #6
How do I get an inventory of what leases I have? What types of data
do I need to comply?
New Lease Accounting Standards - Expert Panel Webinar
What Do We Lease?
Office Space
Retail Store
Warehouse
Trucks
Autos & Vans
Ships & Barges
Forklift & MHE
Manufacturing
Medical Tech
Computers
Servers/Storage
Copiers
New Lease Accounting Standards - Expert Panel Webinar
Where to Find the Data?
Lessor Systems
Accounts Payable
Real Estate
Asset Management
Contracts Management
Tracking Spreadsheets
New Lease Accounting Standards - Expert Panel Webinar
Question #7
What are the key challenges with leases for fleets, IT and other types of equipment (versus real estate)?
New Lease Accounting Standards - Expert Panel Webinar
Scale is One Example of a Difference
BudgetOwners Stakeholders Countries Assets Leases
Fleet, IT &EquipmentLeases
Stakeholders Countries Facilities Leases
RealEstate
10s 10s 100s 100s
1000s 10s 10,000s 1000s100s
New Lease Accounting Standards - Expert Panel Webinar
Question #8
Who outside of the accounting organization should be involved in
the project?
New Lease Accounting Standards - Expert Panel Webinar
Who Needs to Be Involved?
Lease AccountingProject Team
TechnicalAccounting
FinancialReporting
LeaseAdministration
CorporateTreasury
InformationTechnology
Procurement/Supply Chain
CorporateTax
Real Estate Fleet Logistics Data Center
New Lease Accounting Standards - Expert Panel Webinar
Question #9
Do we need a sub-ledger for leasing data? How are companies
approaching this?
New Lease Accounting Standards - Expert Panel Webinar
Lease Accounting Sub-Ledger
General Ledger
PayrollLedger
AccountsPayableSubLedger
AccountsReceivableSubLedger
FixedAsset
SubLedger
InventorySubLeger
InvestmentsSubLeger
LeaseAccountingSubLeger
New Lease Accounting Standards - Expert Panel Webinar
Question #10
What are the biggest unknowns or risks, that we should be aware of?
New Lease Accounting Standards - Expert Panel Webinar
Biggest Risks and Unknowns
Asset Level Financials
Resources & Expertise
SystemsReadiness
Policies & Controls
IncomeTaxes
DebtCovenants
EmbeddedLeases
MidtermEvents
LeaseAccountingTop Risks
New Lease Accounting Standards - Expert Panel Webinar
Question #11
What new policies and controls need to be in place?
New Lease Accounting Standards - Expert Panel Webinar
New Policies and Controls
Lease vsBuy Analysis
What Should &Should Not Be Leased
Single EnterpriseRepository
Verify Accuracy of Data
Asset LevelTracking
Authorization to Lease
New Lease Accounting Standards - Expert Panel Webinar
Question #12
For IT leases (i.e., printers/copiers) in Europe and Asia, how are people treating service contracts that
charge a cost per copy instead of a “lease”? Do these agreements fall into the scope of the new standard?
New Lease Accounting Standards - Expert Panel Webinar
Printers & Copiers (Variable Pricing)
Is there an identified asset?
Contract is or contains a lease
ContractDoes NotContainA Lease
Does customer have the right to obtain substantially all of the economic benefits from use of
the identified asset?
Does customer have the right to direct the use of the identified asset?
Yes
Yes
Yes
No
No
No
New Lease Accounting Standards - Expert Panel Webinar
Question #13
What types of internal and external Initial Direct Costs should be
included as part of the Right of Use Asset?
New Lease Accounting Standards - Expert Panel Webinar
Initial Direct Costs
Typical Initial Direct Costs
Include Exclude
• Commissions• Payments made to an existing tenant to incentivize that tenant to terminate the lease
• Legal fees• Costs of evaluating lessee’s financial condition• Costs of negotiating lease terms and conditions• Overheads
New Lease Accounting Standards - Expert Panel Webinar
Question #14
What business processes will be impacted by the new lease accounting standards?
New Lease Accounting Standards - Expert Panel Webinar
Which Business Processes are Impacted?
Quarterly & AnnualReporting
MonthlyClose IT & Data
CenterManagement
Real EstateManagement
Invoicing& Payments
LeaseVersusBuy
Logistics& WarehouseManagement
BudgetPlanning
TaxPlanning
Sourcing &Procurement
New Lease Accounting Standards - Expert Panel Webinar
More Answers
Download our Lease Accounting Handbookwww.leaseaccelerator.com/fasb-‐handbook
• Who to put on the project team• What data to collect• What steps to take for implementation• How to handle international leases
New Lease Accounting Standards - Expert Panel Webinar
Closing Remarks
• Webinar Replay will be Later in the Week
• Slide Downloads will be Available
Email us at: [email protected]
Or Visit: www.leaseaccelerator.com
New Lease Accounting Standards - Expert Panel Webinar
Thank You