New FASB ASC 842 rules require corporations to account for leases on balance sheets
Bloomberg Tax announced the release of a new lease assets solution designed to help organizations address and comply with the new FASB ASC 842 standards. Bloomberg Tax Leased Assets™ classifies and tracks operating and finance leases across multiple years, computes complex right-of-use (ROU) asset and lease liability amounts, automates workflows, and integrates with ERP systems.
The changes to accounting rules that take effect January 2019 for public companies and January 2020 for private companies require publicly traded companies to report operating and finance leases on their balance sheets and have new lease accounting tests and guidelines in place. This dramatically increases the quantity of data to be gathered and accounted for on financial statements, and causes concern for the C-suite over changing metrics and increased financial statement risks.
“For virtually every lease, the new standard changes the accounting rules governing both operating and finance leases – with far-reaching implications in terms of financial statement impacts, internal controls, and adoption of new technologies” said Ken Crutchfield, Vice President & General Manager of Bloomberg Tax Technology. “Companies should start their compliance efforts now. By implementing an automated lease accounting solution, such as Bloomberg Tax Leased Assets, organizations will gain visibility into their lease data, understand the impact to their financial statements, and be in a position to comply with the new lease accounting rules.”
Bloomberg Tax Leased Assets runs on the Advantage™ platform and provides tax and accounting professionals with:
- Centralized leased asset data and a document repository for lease documents
- An audit trail that offers a complete record including responsible party, time, and date stamp for each step of the lease accounting process
- Automatic lease classification and data driven remeasurement treatment
- Reporting for journal entries and balance sheets
- Integration with ERP systems that empowers better decision-making and realized cost savings
Bloomberg Tax will host a webinar on Thursday, September 20 at 2:00 pm ET that will highlight Bloomberg Tax Leased Assets, its key features, and how it helps companies automate complex calculations, track and classify leases, and deliver advanced reporting.
Visit https://www.bloombergtaxtech.com/ASC842Success to register for the event. You can also learn more about Bloomberg Tax Leased Assets by visiting www.bloombergtaxtech.com/lease.
About Bloomberg Tax
Bloomberg Tax provides comprehensive global research, news, and technology services enabling tax professionals to get the timely, accurate, and in-depth information they need to plan and comply with confidence. Our flagship Bloomberg Tax platform combines the proven expertise and perspectives of leading tax practitioners in our renowned Tax Management Portfolios™ with integrated news from the industry-leading Daily Tax Report®, authoritative analysis and insights, primary sources, and time-saving practice tools. Bloomberg Tax technology solutions on our proprietary Advantage platform help professionals simplify complex processes to better control risk and maximize profitability. For more information, visit https://www.bna.com/tax.