Rent Accounting Requirements Assets – The CPA Magazine

FASB’s contemporary paintings agenda has integrated proposed enhancements to source of revenue tax accounting associated with the hot tax legislation adjustments, the 2018 GAAP monetary reporting taxonomy, income popularity, derivatives and hedging, and rent accounting. FASB issued a proposed Accounting Requirements Replace (ASU) in early January 2018 to handle implementation problems for ASU 2016-02, Rentals (Matter 842), which is able to have an effect on 2018 or 2019 monetary statements. The 2016 ASU calls for lessees to acknowledge rent liabilities according to the existing price of ultimate rent bills, and calls for further disclosures via lessors and lessees; the 2018 replace considerations the separation of non-lease parts from rent parts and the adoption date (http://bit.ly/2rTgtNH).

This column main points a number of helpful and unfastened assets of rent accounting knowledge to be had at the Web, together with weblogs, movies, and a unfastened rent calculator.

KPMG Monetary Reporting View

KPMG’s Monetary Reporting View weblog (https://frv.kpmg.us) covers a number of matters intimately, and the Reference Library (https://frv.kpmg.us/reference-library.html) is a superb supply of data on FASB, IFRS, and SEC updates, in addition to get admission to to KPMG-sourced fabrics. The rentals subject will also be discovered at https://frv.kpmg.us/all-topics/rentals.html. One exceptional unfastened useful resource is KPMG’s 755-page rent accounting guide, printed in December 2017 (http://bit.ly/2Fxqylz). The guide is written in transparent, undeniable English, with simple to apply “mini-tables” on particular problems; it covers the definition of a rent, keeping apart parts of a freelance, ideas and definitions for lessees and lessors, lessee and lessor accounting, and plenty of different matters. The appendices come with an index of Q&As, in addition to a at hand listing of examples that hyperlink again to the guide dialogue.

The yearly “Accounting Trade Survey: Earnings and Leasing” for 2017 (http://bit.ly/2rTUWVj) published that 60% of taking part corporations have met surprising demanding situations, together with figuring out embedded rentals and deciding on and imposing a leasing gadget. Leasing implementation prices, together with the will for brand new rent accounting instrument, have exceeded budgeted quantities for 40% of respondents. The 32-page survey effects with motion steps will also be downloaded as a PDF structure.

The webcast “New Rentals Usual Implementation Section I: A Dialog with the FASB,” which at first aired in October 2017 (http://bit.ly/2rTViv7), covers software steps that businesses must be taking to agree to the brand new usual, in addition to KPMG views and decided on accounting implementation problems. It additionally features a abstract of KPMG’s survey of economic commentary preparers on how they be expecting to be impacted via the brand new criteria and the extent of growth they’re making towards implementation. “New Rentals Usual Implementation Section II: Key Accounting Problems and Implementation Concerns,” which aired in November 2017 (http://bit.ly/2nyCWdJ), addresses technical implementation problems in additional element, reminiscent of the brand new definition of a rent, allocation to rent and non-lease parts, asset impairment, accounting and reporting affects, and methods and processes affects. The webcasts run for 90 mins every and come with downloadable slideshows.

PricewaterhouseCoopers CFO Direct

Very similar to KPMG, PricewaterhouseCoopers’s CFO Direct weblog (https://www.%.com/us/en/cfodirect.html) items knowledge on numerous accounting criteria, monetary reporting, and present regulatory occasions. The Rent Accounting webpage (https://%.to/2nrUd93) promotes PricewaterhouseCoopers’s Rent Accounting Information, the In Transition publication factor on “Sensible Insights on Rent Transition,” and a podcast sequence on quite a lot of matters. The Rent Accounting Information (https://%.to/2nmxCe8), up to date in March 2017 and downloadable as a 283-page PDF and iBook software for iPads, discusses preparations that fall beneath the brand new rent tips, classification and accounting for lessors and lessees, distinctive leasing transactions reminiscent of sale leasebacks and leveraged rentals, and monetary commentary presentation.

The In Intensity publication on “The Leasing Usual: A Complete Take a look at the New Fashion and Its Affect” (https://%.to/2EoWsRD) provides a shorter learn (20 pages) overlaying key provisions, contract issues, lessor and lessee accounting, rent phrases and different similar matters. There’s a very helpful desk that describes important variations from the outdated criteria and gives PricewaterhouseCoopers’s observations (p. 15). The Rent Accounting Trade Dietary supplements webpage (https://%.to/2FxNP6Q) supplies detailed steerage for 12 other industries, reminiscent of car, banking and capital markets, power, insurance coverage, and generation. Each and every business has a brief corresponding downloadable In Intensity publication.

Different Loose Assets

Along with the extra detailed fabrics mentioned above, there are a number of different assets of fast and sensible knowledge on rent accounting.

PowerPlan (https://powerplan.com/lease-accounting/) is a industrial supplier of rent accounting instrument. Web page guests who check in for a unfastened “Useful resource Information to Rent Accounting Adjustments” achieve get admission to to a lot of fabrics, reminiscent of whitepapers, movies and webinars, articles, and infographics (http://bit.ly/2nvSpLd).

The whitepaper “8 Issues to Know Concerning the Rent Accounting Requirements Adjustments” (http://bit.ly/2Gzcbyg) is a one-page abstract that comes with necessary reminders, reminiscent of that it isn’t too quickly to start out collecting rent knowledge, that new trying out standards can be required sooner or later, and that rent agreements should be routed via a central accounting serve as. “The New Rent Accounting Requirements: 9 Questions Monetary Execs Must Ask Now” (http://bit.ly/2GADFn1) is a two-page record overlaying how rentals can be tracked in a different way, having enough contract evaluation processes in position, and attention of the prospective complexities of reporting to other regulatory our bodies. Not unusual pitfalls mentioned in “3 Errors to Steer clear of in Your Rent Compliance Plan” come with no longer beginning quickly sufficient, no longer deliberating the affect on different departments, and no longer sufficiently comparing instrument (http://bit.ly/2nw37Sa).

PowerPlan’s on-demand webinar “It’s an Iceberg: Making ready for the Complete Affect of ASC 842 and IFRS 16 Rent Accounting Requirements” is a 30-minute video that discusses making checklists for coping with new leasing problems, the will for perpetual compliance when corporations have more than one leased property, and methods for extra successfully managing compliance (http://wi.st/2rR2N60).

FASB Replace Hyperlinks

FASB’s web page provides a number of instructional sources at the rent criteria, together with 3 quick movies (“Hanging Rentals at the Stability Sheet,” “Rentals: A Fast Instance of the Show Way,” and “Why a New Rentals Usual?”), in addition to an extended webcast, “Accounting for Rentals Primer—New Laws Efficient for Calendar 12 months 2019” (http://bit.ly/2DQ4Etj). The primer webcast items an outline of the brand new rent style, discusses the brand new approaches for finance and working rentals and variations with IFRS 16, supplies a number of sensible examples, and addresses monetary commentary disclosures.

In any case, ContractNet (http://contractnet.io/accountants/), a industrial supplier of contract management instrument, addresses numerous contract sorts together with rentals. The web page provides a unfastened rent calculator (http://bit.ly/2DNCJOu) that comes with enter for rent time period knowledge, rent prices to capitalize, and rent issues; it outputs an ROU asset agenda, a legal responsibility agenda, and an amortization agenda, all of which will also be exported to Excel.


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