Utilize software developed specifically to manage your real estate and equipment leases
ASC 842 is here. The new standard requires businesses to reflect lease commitments in their company financials by recording them on the balance sheet. This applies to land, buildings, assets and equipment where the lease is over a year in length. To adopt the standard, fully comprehend its impact across an organization and provide full visibility to stakeholders, a specialist system will be required. At MRI Software, our comprehensive solution suite has consistently evolved to help clients meet the rigorous demands of core accounting and financial reporting regulations – and our current product range has been developed specifically for the introduction of the new ASC 842 standards. Our innovative ASC 842 software is being utilized by the leading corporate occupiers in retail, aviation, telecoms, logistics and a variety of other sectors to efficiently and proactively tackle the complexities involved and produce accurate financial information with relative ease. Working in partnership with our team of CPA’s and leasing experts, the platform can be utilized as a standalone ASC 842 calculation tool or be delivered as part of an integrated lease management, property management and accounting system.
Perform lease classification test to determine Finance vs Operating leases
Manage transitional rules and the entire life of the lease
Manage landlord incentives, impairments and restoration costs
Journal Entry generation to get data to your balance sheet
API available to interface ASC 842 journals and lease payments to your corporate ERP system
Standard disclosure reports providing details of right of use assets, interest, amortization, cash flow and weighted terms for both standards
Get notification alerts when critical information changes
Scenario modelling of lease terms to limit the impact of new leases on the balance sheet
Create an asset class matrix and define discount rates by asset type
Multiple assets grouped to a single lease contract when required
Set materiality thresholds with the ability to exclude low value leases
Manage decision-making process for renewal and terminations options
Handle the impact of ASC 842 on your subleases
Automatic recalculations and associated balance sheet adjustments when required
Building success and empowering collaboration with purpose-built ASC 842 software
One of the most critical measures of success in the adoption of ASC 842 will be how closely the finance and real estate departments work together – along with members of HR, legal and procurement teams. Collaboration will be a cornerstone of effective implementation, and where teams seek to act in isolation, they risk missing crucial nuances that may have a major impact – particularly if they’re trying to handle calculations across separate platforms. By harnessing the power of a comprehensive and flexible lease accounting solution, you can bridge the gaps and ensure data is captured, at source, with no need for double entry. It also provides the tools for your organization to work as one, and allows for effective, clear and accurate information to be communicated to the business, its stakeholders and its investors.
How we can help
ASC 842 Infographic
Find out about the benefits of departmental collaboration for ASC 842 compliance.
Property & equipment leasing
FASB & IASB compliance for both real estate and non-property assets.
Lessee and lessor disclosure reports (FASB & IASB).
FASB and IASB journal entries per period – standard reporting and ability to interface to ERP.
FASB & IASB compliance for lease receivables linked to a head-lease payable, whether the subtenant is a third party company or intercompany.
Lease level accounting
Audit trail for each lease of all balance sheet calculations, each displaying amortisation, opening/closing liability, interest, depreciation etc for each period in line with company-specific accounting calendar.
Discount rate management
Definition and management of discount rate strategy - lease by lease, implicit, asset class.
Support reporting of FASB and IASB dual reporting against the same lease for international organizations required to declare the impact on the balance sheet of leases across multiple entities within a global group.
Lease exemptions and classifications
Automated classification of short-term leases and small value lease exemptions, along with FASB operational and finance lease classifications.
Compounding on a daily rate or monthly rate in line with a client’s accounting calendar i.e. standard calendar months, 13-week retail accounting periods (4-4-5).
Over 400 lease accounting implementations
Used in 100+ countries
Trusted by more than 1000 property occupiers