ASC 842 Made Simple
Tenants, Here is Why You Need Our Essential Lease Accounting Software
Property Works Makes Meeting ASC 842 Requirements Simpler Than Ever
Maintaining compliance with ASC 842, which became effective January of 2022, can be complicated if you're managing your lease accounting with unwieldy, error-prone methods like manual spreadsheets. Property Works’ streamlined solution offers you robust reporting in an easily auditable format, saving you time and stress. We broke down the differences between ASC 842 and how it differs from its predecessor ASC 840 in this previous post.
Now, we're diving deeper into how Property Works' lease management software can make meeting this newer standard a breeze. If your company follows generally accepted accounting principles (GAAP) and has leases with terms longer than 12 months, you're going to want to read this to understand how to comply with ASC 842 using our software solution.
Functionality and Efficiency
Our web-based lease management software is specifically designed for tenants, giving you everything you need and nothing you don't. When it comes to meeting ASC 842 requirements, our software makes reporting a simple matter of data entry, by keeping everything you need updated and right at your fingertips.
Here's how Property Works' lease management software, handles ASC 842 reporting requirements:
- Supports recording of leases as right of use assets and includes any lease liabilities, both new reporting requirements with ASC 842.
- Facilitates classification of leases as either “operating” or ”finance”, helping you accurately account for leases on your balance sheets.
- Calculates terms including initial scopes, remeasurements, and derecognitions in accordance with ASC 842 or IFRS 16, as appropriate, for all of your operating and finance leases.
- Tracks and calculates lease accounting terms and other data, simplifying the process of pulling the necessary data for ASC 842 compliance and sparing you the difficulty of identifying and calculating how changes to lease terms affect your lease accounting.
By standardizing existing and new data, tracking lease and related agreements, and maintaining documents all in one place, we make it easy to provide ASC 842-compliant reporting and to provide support to auditors demonstrating your lease accounting process.
Beyond offering the most robust lease management software on the market, Property Works also provides the services and expertise of our experienced team of lease management professionals. The combination of our efficient, reliable, and customizable software with our knowledgeable people will help your business adapt to ASC 842 and any new standards that may come along in the future.
Schedule a free demo today to see our software in action and learn how we can make the complex, simple, in your business.