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.

Advantages

  • 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

Lease Accounting

Ensure compliance using software specially designed to manage your real estate and equipment leases.

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If you would like to find out more about our ASC 842 software, please get in touch today.