Aptitude Software: Post-Enron Lease Accounting Rule Requires New Financial Control over Off-Balance-Sheet Liabilities
June 28 2017 - 9:47AM
Business Wire
Aptitude innovates with an accounting solution
for an accounting requirement
Aptitude Software announced today an innovative new solution
enabling enterprises to gain control over the trillions of
outstanding lease liabilities that are typically held
off-balance-sheet.
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20170628005888/en/
Lease accounting solutions for IFRS 16,
ASC 842 from Aptitude Software (Photo: Business Wire)
The move supports Chief Financial Officers who need to deliver
investors and management with clear information about lease
liabilities moving onto balance sheets following new accounting
rules from the Financial and International Accounting Standards
Boards that take affect 1 January 2019 (ASC 842 and IFRS 16.)
The scale of the lease accounting challenge is very large. Many
experts estimate that the new rule will push $2.86 trillion of
liabilities onto balance sheets, with many enterprises having
thousands of leases spread across global businesses.
Aptitude Software’s analysis has found that many companies’
potential lease liabilities are a significant portion of their
existing balance sheets. According to the FT, “this potentially has
big affects on companies’ credit scores and debt covenants based on
ratios of obligations to cash, assets or profits” – driving CFO’s
to take notice of the new rules and institute appropriate lease
accounting controls.
There are other proposed solutions on the market from lease
management vendors, but Aptitude Software brings a unique ability
to serve finance as they implement complex accounting scenarios
while ensuring CFO’s increase financial control, transparency and
insight.
Now that there are only 18 months until the new rules need to be
adopted, enterprise finance teams are realizing the complexity of
accounting for leases.
“One of our large telecommunications customers has estimated a
66 fold increase in lease accounting journal lines,” says Ross E.
Chapman, Aptitude’s Marketing Director. “The new rules challenge
finance teams to integrate and automate lease accounting into
financial workflows.”
Other enterprise teams are challenged with new accounting
complexities such as lease classification tests, how to account for
multiple subleases within a single headlease, managing embedded
options, and accounting for leases with variable payments.
Join Aptitude Software for an upcoming lease accounting
seminar
Join us on 11th July to discuss our accounting solution with our
accounting experts and how it can help you.Please register at
https://www.aptitudesoftware.com/events or via
info@aptitudesoftware.com.
About Aptitude Software
Aptitude Software delivers specialist enterprise finance
applications to equip CFO’s to fulfil their strategies and
ambitions. Our software controls and automates high volume, complex
accounting processes to provide solutions that aren’t served well
by legacy ERP and IT-centric approaches. For more information,
visit www.aptitudesoftware.com or contact us at
info@aptitudesoftware.com.
Aptitude Software is a Microgen plc company (LSE: MCGN).
Copyright © Aptitude Software Inc. 2014-2017.
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version on businesswire.com: http://www.businesswire.com/news/home/20170628005888/en/
Aptitude SoftwareRoss E. Chapman+44 207 496 8100orSarah
Werner+1 617 273 8338info@aptitudesoftware.com
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