New support software for lease accounting

watson shauna

Global consulting and professional services firm RGP and lease management software provider CoStar have announced a partnership to provide companies with an end-to-end solution to meet the looming deadlines for compliance with new lease accounting standards finalized in 2016 by the US Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB).

The new standards require companies to recognize practically all obligations for real estate, equipment and other leased assets on their balance sheets, with Securities and Exchange Commission data suggesting that Fortune 500 companies currently have more than $700 billion in off-balance sheet lease obligations that will be affected by the new standards, and the IASB figures indicating new balance sheet additions worldwide may be in excess of $3 trillion.

RGP says this significant shift in accounting policy may have far-reaching impacts in many areas such as policies, procedures, systems, debt covenants and financial ratios. It will affect businesses in numerous industries heavily invested in lease arrangements, especially those in consumer products, restaurant, retail, financial services, manufacturing/distribution, utilities and oil & gas.

“RGP is excited to partner with CoStar to provide our clients with a full ASC 842 or IFRS 16 solution,” said Shauna Watson, RGP’s global managing director of finance and accounting. “From assessment to data gathering, to process design to implementation, our experienced consultants can help companies comply with these new accounting standards effectively and efficiently.”

“We’re pleased to align our proven lease accounting solutions with RGP”, said Andy Thomas, president of CoStar. “The combination of our lease manager product suite and the trusted advisors of RGP offer clients a proven combination for tackling compliance with the new lease accounting standards”.