CoStar’s Data Connector and Lease Accounting Software enabled this global organization to retain investments in legacy lease management systems, avoid expensive upgrades and rapidly implement ASC 842 and IFRS 16 compliance solutions.
This Fortune 25, multinational conglomerate has more than $110 billion in annual revenue and numerous business operations from aviation and electronics to energy and transportation. The 125 year old company operates 29 different business units worldwide with 29 separate ERP systems.
With more than 2,800 real estate locations and $4 billion in lease obligations, compliance with the new FASB and IASB lease accounting standards represented a significant challenge and expense for the company’s accounting and finance team. Gathering and organizing the voluminous amount of leased asset data from its 29 business units and coordinating with hundreds of stakeholders across the organization would be a daunting task. The company had a substantial, multi-year investments in an on-premise IWMS system for lease management. Required upgrades and additional cost to make legacy systems functional for ASC 842 and IFRS 16 reporting requirements were extremely expensive and complex due to high levels of customization to suit different business unit needs. These challenges combined for a unacceptable high risk for meeting the project and compliance timelines.
CoStar’s cloud-based Lease Manager product and proprietary Data Connector solution offered the company a way to retain its investment in existing lease systems – while avoiding the expensive upgrades proposed by the vendor – and take advantage of CoStar’s proven lease accounting functionality. CoStar created a six week pilot system that allowed the company to test and review customized API integrations, system workflows and reporting. Once the system was tested and proven, CoStar’s in-house implementation team helped kick off the system roll-out to all the company’s business units. CoStar also trained more than 20 worldwide accounting leaders on how to get the most value and use from the solution. The combination of CoStar’s professional services, easily configured SaaS lease accounting software, and enterprise security made for a rapidly deployed, economical and risk-free solution.
The company’s accounting and finance team was able to put its arms around the tremendous amount of lease information and begin to more effectively manage and report on the data. Because the solution is cloud-based with an unlimited amount of users for the same cost, the company plans to offer access to more than 2,000 users.