IFRS 16 and US GAAP ASC 842
In 2016, the FASB and IASB finally agreed on something – the need for organizations to re-evaluate all of their lease liabilities on their balance sheet and continuously monitor and report.
IFRS16 / ASC 842 are the new lease accounting regulations that require everything from a real estate lease to a car lease to a fax machine lease to be holistically evaluated, categorized, and placed on the balance sheet appropriately. Non-compliance comes with hefty fines and accounting purgatory. The processing of these leases is long, cumbersome, and just simply finding them is painful enough.
Leverton’s AI lease abstraction solution allows the automated processing of asset and real estate leases. Whether it’s a fax machine, laptop, telecom tower, real estate, or auto lease, we have pre-built custom IFRS 16 / ASC 842 extraction templates that will port the information into your database. We have worked with tons of accounting systems like ProLease, MRI Horizon, SAP, Powerplan, Lease Accelerator, Visual Lease, Tririga, and many others to assist in this extraction process. Moreover, our system will provide highly structured data and meet the ongoing compliance standards of the new regulations.
The US operations of an international luxury retail brand came to Leverton to update its internal accounting measures after facing a data accuracy and auditing challenge to reach compliance with the new lease accounting standards. With leases localized among national or industry-specific holding companies with varying levels of familiarity with US/International accounting practice, they needed to ensure comprehensive and accurate capture of lease data, especially considering that they are working globally with a large team of contacts across 10+ entities.
Over the course of six months Leverton extracted data from thousands of real estate and equipment leases, trained lease admins in APAC, EMEA, and the US to use the Leverton software to review the performance of AI extraction to ensure the highest possible data quality and moved all the structured data to the desired lease accounting system. These leases were extracted in English, French, Spanish, German, Russian, Chinese, Japanese, and over ten other languages. With an automated solution scalable to other regions, the retailers’ accounting teams are now able to work with accurate data and to perform necessary lease accounting functions with a simplified workflow and a permanent audit history of all files in one centralized place for long-term global lease management.
Why use Leverton AI?
Compliance with regulations
Speed and organization of documentation
Out-of-the-box extraction templates with plug and play integrations to leading accounting systems