With many non-real estate leases having been obtained locally and regionally, it will be a large undertaking to be sure that these leases are consistently managed. There are significant advantages to a central repository for non-real estate leases, namely ease of compilation and comprehensive reporting. One thing is certain – spreadsheets will not meet the internal control and audit standards that need to be imposed by CFO’s to guarantee balance sheet accuracy and auditability.
Consolidate and centralize all lease information with CoStar Real Estate Manager
The challenges of the new FASB lease accounting standard highlight the need for more centralized, corporate involvement. CoStar Real Estate Manager can support the collection and centralization of all the lease data that must be shared across all relevant departments of your organization. CoStar Real Estate Manager software was enhanced in January 2012 to include all data elements needed to meet reporting requirements under the new FASB standard. In addition, CoStar Real Estate Manager delivered a report that estimates the impact of the new standard to your balance sheet.
What you can do NOW to prepare
While non-real state leases are typically not as complex as typical real estate leases, there are four actions you need to take NOW to get your equipment leases ready for the new FASB standard:
- Make sure your inventory of non-real estate leases is complete and accurate.
- Ensure the security and accessibility of equipment lease information to all authorized parties.
- Read the CoStar Real Estate Manager white paper, “50 FASB-Focused Fields You Can’t Do Without”, to better understand the imperative data you need to collect for your non-real estate leases.
- Lead the “FASB charge” at your company by sharing the news with your colleagues about how CoStar Real Estate Manager can be your company’s single source of information for all your leases.
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