It’s been almost a year since we first posted about the anticipated lease accounting changes. And we’re still waiting…. A few weeks ago, the IASB and the FASB announced that they would re-expose the proposal that was originally released last August. The Boards stated that they hoped to publish the draft sometime during this third quarter and have a final ruling before the end of the year. The jury’s still out on whether that will actually happen but we’ll be on top of it when it does. So relax, we’ve still got you covered.

To read a little more about the extension, check out Andrew Larrier’s 8-4-2011 memo to his Property Works colleauges. For more detail, see his 8-2-2011 update.

The industry is abuzz with questions about the new lease accounting standard expected to be finalized sometime in mid 2011. Aside from the impact the new regulations will have on organizations’ financial statements, the big concern for retail and restaurant companies is the immense administrative burden required to comply with the new standard. 

Here’s the good news for Property Works clients and users of its web based lease administration software REport ms (Real Estate Portfolio Management System): We’ve got you covered.We’ve been following the progress of the new standard and attending seminars and work groups designed to help companies prepare for the changes. Enhancements to REport ms are well underway and the new fields and reports expected to be required will be ready by the time the ruling is final. So what does this mean for Property Works clients?

• Peace of mind – REport ms will allow for parallel reporting through the effective date of the change. REport ms users can rest assured that they have a great system already in place. All required lease data is captured in REport ms in such a way that no “re-abstracting” efforts will be needed.
• Plenty of time to review, test, and document procedures – Property Works will offer transition plans and testing and implementation programs to all of its clients that will drastically reduce the in-house time and costs requirements.
• Ability to implement early, if desired – It is anticipated that the new standard will allow companies to implement the new standards early if they choose. And since it is also expected that all existing leases will need to be restated, getting a jump on things may be the right move for your organization. Either way, while other companies are scrambling to find, implement, or test new or existing technology, REport mswill allow for parallel reporting through the effective date of the change.

As always, the upgrades to REport ms and the associated reports necessary for the impending changes will be at no cost to our clients.

We will continue to post updates on the status of the new rules and our progress on all related technology enhancements and programs. In the meantime, if you’d like to learn more, check out these helpful links:

• IFRS – Snapshot:Leases
• TRIRIGA – What to look for in a lease administration system