As a result of the Novel Coronavirus, Accounting Departments within Private and Non-Profit organizations received their second round of relief from the standard boards as it relates to New Lease Accounting effective dates.
Many private and non-profit organizations have put a hold on lease accounting implementation projects due to the compliance date extended to 2022. While Accounting and Finance departments are taking this as a sigh of relief, this is an opportunity to recognize the subconscious benefits of New Lease Accounting implementation projects.
In an effort to be compliant and stay compliant, companies have purchased and implemented lease accounting software solutions that will be maintained for years to come. Whether an IWMS platform or a lease accounting point solution, the software captures base-level lease attributes which drive subconscious benefits caused by implementing the New Standards:
- All ‘In-Scope’ Leases
- Critical Dates
- Financial Data
- Options Driving Financials
Managing these attributes of the lease portfolio within a system provides the Real Estate Department and Strategy teams an opportunity to make informed occupancy decisions. As the world continues to face many uncertainties, the unknown of occupancy is causing distress within organizations. Navigating through COVID-19, informed occupancy decisions may have a much larger impact on the company than most have seen before. Complete and accurate data within a system is the first step in starting to strategize the portfolio. Starting now will provide companies the opportunity to leverage the benefits of implementing the new standard while also being ahead of the curve for 2022 compliance.