The 10 Features Your ASC 842 Compliance System Should Have
Despite a looming deadline, recent surveys show that up to 30 percent of private companies still have not decided which technology system they will use to comply with the new lease accounting standards under GAAP and IFRS. These new accounting rules bring virtually all leases onto the balance sheet by January 2020.
At a minimum, companies will need systems that:
- Centralize all leases in a single database
- Automate accounting calculations
- Generate key reports so that leases can be properly disclosed on the financial statements
Beyond those basics, it can be difficult to know which technology system meets your company’s specific needs. What do you need to know to make the selection? Below, we’ve compiled a list of the key features CFOs and controllers should ask software vendors about to ensure they are implementing a lease accounting system that will be valuable for the long haul.