Remember Y2K? We all thought the world would end on January 1, 2000. And why wouldn’t we? All the experts were shouting that there was no way the world’s technology was ready for the coming of the Millennium. And guess what? Nothing happened. The sun came up, our computers turned on and we all carried on as usual.
Well, here we go again. Over the past few weeks, we’ve felt a bit of panic bubbling up among retailers and retail landlords regarding the implications of FASB on lease accounting practices. The panic has partially been brought on by advisors and consultants espousing their beliefs that retailers and landlords aren’t prepared for FASB and there are no experts or software out there that are prepared either.
Another false alarm? FASB didn’t just happen overnight. The new rules were initiated as a joint project with the IASB ten years ago – plenty of time for lease administration and lease accounting experts and software providers to prepare for the change.
Yes, the new rules do demand significant changes in how retailers and restaurants extract and report on lease data. Tenants now must gather significantly more information from their leases. As a result, they must find the time and the resources to review leases, input the necessary lease data into some kind of database, and be prepared to report on all of this new data.
SRS Lease Administration has been following these rule changes since they were announced. Our team is prepared and the technology we employ is ready to help companies implement their respective action plans to deal with these new standards. We know what new lease data must be extracted and we utilize and recommend software that has been updated to house and report on this data.
To learn how we can help take the pressure off and free up your time and resources, contact Jean-Marie Villacampa – [email protected] 972.419.4241