Category Archives: Uncategorized

Are types of businesses that are probably not good candidates for a lease accounting software?

Lease accounting software is not a substitute for a good lease accountant. The person entering the data in a lease accounting software must understand the lease accounting requirements and interpret lease contracts correctly. Leases that require frequent reassessments of discount rates, lease terms, lease payments, and lease classification are not good candidates for such software.… Read More »

What size and types of businesses will best benefit from using Lease Accounting software? Why?

A company with more than ten active leases must consider a lease accounting solution. The new accounting standard requires more sophisticated financial calculations and detailed monitoring and tracking of leases. Companies will find it extremely challenging to use spreadsheets for lease accounting because of the following limitations of spreadsheets:  Lack of ability to track changes: One cannot track changes in spreadsheets. Employees can deliberately or inadvertently overwrite spreadsheet data. Therefore, spreadsheets do not meet internal… Read More »

iLease Management Launches iLeaseXpress, the Most Cost-Effective, Intuitive, and Accurate ASC 842 Lease Accounting Solution for Companies with Under 15 Leases

iLeaseXpress is a cloud-based lease accounting solution providing compliance to the ASC 842 lease accounting standard for private companies that have less than 15 leases. Powered by iLeasePro, the company’s flagship lease accounting solution, iLeaseXpress offers companies with smaller lease portfolios the ability to transition to and adopt the complex ASC 842 lease accounting standards for… Read More »

ASC 842 Changes – Lease Modifications

We’ve been addressing the changes FASB proposed and implemented in ASC 842 over the past couple of articles, including the changes in rate implicit in the lease, determination of IBR and leases embedded in contracts. After the break, FASB members, preparers and others reassembled to discuss another change; lease modifications.  Here, the main issue was with regards to the complexity and costs involved with applying lease modifications in the books. This… Read More »

Embedded Leases within a Contract Under the ASC 842 Standard

We previously discussed how FASB had discussed changes in ASC 842: Lease Accounting in Rate Implicit in the lease as well as the determination of IBR. The board has also outlined the concern presented by some preparers about the identification of leases embedded within a contract.   The main issue was that entities spent significant amounts of time trying to identify and account… Read More »

ASC 842 Changes: Would a Specific Incremental Borrowing Rate Be Better?

The problem of determining the rate implicit in a lease also presented a concern that most preparers used the incremental borrowing rate (IBR) as the discount rate. However, that wasn’t the only concern that came to light during FASB’s roundtable in September 2020.   Apart from the rate implicit, members also discussed the IBR; i.e., how those that have adopted ASC 842 determine the IBR. It… Read More »

Governmental Accounting Standards – Leases

In June 2017, the Governmental Accounting Standards Board (“GASB”) issued Statement No. 87 – Leases which establishes new accounting standards to be applied to all lease transactions for state and local governments. The Standard is effective for fiscal periods beginning after December 15, 2019 with earlier application encouraged. The governmental standard follows most of the… Read More »

iLeasePro’s FASB and IASB Lease Accounting Changes LinkedIn Group continues to grow

Our LinkedIn group, FASB and IASB Lease Accounting Changes, is growing fast.  We are closing in on 500 members.  This is a great group to discuss the FASB and IASB Lease Accounting changes with as you begin thinking about preparing for the changes. https://www.linkedin.com/groups/FASB-IASB-Lease-Accounting-Changes-3852961 For more information on iLeasePro please visit: https://ileasepro.com/