LeaseQuery Features and Functionality

Get an unmatched suite of features and functionalities that enable you to comply with ASC 842 and IFRS 16.

LeaseQuery Features and Functionality

Get an unmatched suite of features and functionalities that enable you to comply with ASC 842 and IFRS 16.

We Ensure You Comply Fully with FASB ASC 842 & IFRS 16

Manage and Account for Your Leases with Ease

With LeaseQuery, your team can work together seamlessly – for lease accounting and lease management. Our out-of-the-box features reduce the time you spend on lease accounting and make it possible for you to comply with confidence.

Lease Accounting Features
check_circleAmortization Schedule check_circleFor Equipment Leases
check_circleAsset Management check_circleFor Real Estate
check_circleBudgeting & Forecasting check_circlePayment Tracking
check_circleCapitalization Reporting check_circlePortfolio Management
check_circleCritical Date Alerts check_circleTax Management
check_circleLease Classification check_circleTenant Database
check_circleRequired Disclosure Reports check_circleJournal Entries
check_circleAsset-Level Reporting check_circleFASB 840, 842, IAS 17 & IFRS 16 Compliant
check_circleMulti-Currency including Translation and Remeasurement check_circleERP Integration
check_circle13 Period Calendar check_circleVariable & Percentage Rent
Lease Management Features
check_circleCommercial Leases check_circleProperty Management
check_circleContact Management check_circleRetail Leases
check_circleLandlord Database check_circleSublease Management
check_circlePortfolio Management check_circleTenant Database

 

Software Functionality

You’ll find many companies that offer lease accounting software. But most don’t have the functionalities you need to comply. And while you may be tempted to use Excel, spreadsheets come up short. These 18 features are critical to complying with the new standards.

Functionality Brief Description LeaseQuery Spreadsheet Why is this functionality critical for FASB 842 and IFRS 16 compliance?

Accounting & Operational Tools

13 Period Calendar

Ability to load your unique calendar requirements, accommodating varying fiscal calendars. check_circle check_circle Industries such as retail have 13 period calendars, and fiscal years can begin in a month other than January. In a 13 period calendar this means that expense reporting in each period is not the same. The software should provide this flexibility and allow companies to match rent expense to their appropriate period, not force them to adopt a 12 month calendar period.

Useful Life Charts

Allows companies to elect standard useful life amounts by classification of asset check_circle check_circle The software needs to allow global control for determining the useful life as this is critical to determining lease classification accurately.

Central Repository & Ease of Document Retrieval

Being able to access and download any document related to the portfolio of leases check_circle For ease of reference, the software needs to enable the user to view the actual source lease contract, thus enabling your auditors to easily access the information for verification purposes.

Alert Notifications for Lease Deadlines & Renewals

To ensure renewal options, payment increases, start dates, end dates, etc. are not missed that could cause unnecessary incremental costs. check_circle When leases lapse, your payments can increase. A “small” monthly increase of $1,000 over a typical 5-year lease results in a total extra payment of $60,000!

Three Options for IFRS

Ability to adopt IFRS 16 standards using any of the three optional methods check_circle FACT: There are two methods to adopt for IFRS: full retrospective and cumulative approach. LESSER KNOWN FACT, there are two options for adopting the cumulative approach. The software needs to calculate all three methods by each individual lease.

Disclosures

Provide accurate and complete disclosures under FASB 842 and IFRS 16 check_circle There are numerous disclosure requirements under the new lease accounting standards. The software needs to provide a one-page summary showing you the COMPLETE disclosures required under FASB 842 and IFRS 16 ON ONE PAGE so that compliance is as simple as a copy and paste exercise.

System Intelligence

Calculates the ROU asset and lease liability

Accurately calculate the short and long-term lease liability, while also amortizing the right of use asset check_circle check_circle The right of use (ROU) asset, is NOT amortized using the straight-line method. Unless, it is impaired. The software must be sophisticated enough to first amortize the ROU asset as a portion of rent expense, determine if impairment exists, and if it does, amortize the ROU asset using the straight-line method. The software needs to be able to do both, and know when to use either method.

Contingent Rent

Ability to handle contingent rent (for instance, percentage rent, usage rent, or royalties) check_circle check_circle Leases may include payments based on contingencies, for instance, a percentage of sales or usage. The software needs to provide the total rent (including contingent rent), but also needs to ensure that contingent rent is never included in your lease liability or ROU Asset.

Lease and Non Lease Components Assessment

Ability to separate the lease and non lease components by classification of asset check_circle This is one of the most misunderstood practical expedients available. Most companies are reflexively electing to separate the lease and non lease components based on a misinterpretation. The software needs to be able to show them the CORRECT IMPACT of separating or combining the lease components.

Practical Expedients

Electing or not electing the available practical expedients. check_circle The software needs to have the policy/company-wide ability to elect the three practical expedients that have to be selected together and the other two practical expedients that could be selected separately.

Borrowing Rate Charts

Ability to assign a borrowing rate for different lease terms, currencies, and subsidiaries of the lease portfolio check_circle The boards specifically stated that for the discount rate, it's NOT a one size fit all. For instance, a lease denominated in US dollars would utilize a different discount rate to calculate the lease liability than a lease denominated in a highly inflationary currency. Your software needs to be powerful enough so that your discount rates for each currency, subsidiary, and lease term can be centrally controlled (preferably by your treasury department).

Data Integrity

Data Entry Validation

Two step approval process to review inputs and ensure completeness and accuracy check_circle For accountants, to err is human, to forgive is against FASB policy. The software needs to have some sort of data validation for SOX compliance. There has to be segregation of duties. One person to enter information, and another person to approve.

Lease Change History Documentation

Easily Retrieve who made the change, what was changed, who approved it check_circle For auditing purposes, the software must be sophisticated enough to provide an audit trail for each and every change made to each and every lease in the software. At a minimum, who made the change, the previous value, the new value, who approved the change, and when the change was made. This functionality ensures accountability, compliance with SOX and decreases the risk of material misstatement in your financial statements.

Role Based Access by Subsidiary/Location

Ability to place controls around which leases users have access to check_circle Most global organizations want to restrict access to only the jurisdictions that they are responsible for. You don't want your controller in Europe making changes to your leases in the US. The software needs restrictions on who has access to what based on their role and/or location. Without this functionality, errors would be easier to introduce to your data.

Duplicate Prevention

Ability to prevent duplicate leases in the software, based on unique characteristics check_circle Unique identifiers don't prevent the same lease from being entered twice. For instance, a unique identifier won't prevent the same lease entered differently as "corporate headquarters" or "corporate HQ". So, the software needs to use other means to ensure duplicates are not introduced.

Locking Journal Entries

Ability to freeze entries in the software for auditing purposes, as well comparing what was posted to what should have been posted. check_circle Transactions may occur in the field but the accounting department gets the information after the books have been closed. The software needs to be able to freeze the journal entries that were posted, identify the adjusting entries, and post the differences in a subsequent period.

International Considerations

Translation & Re-measurement

To translate amounts from one currency to another, AND remeasure balances from one currency to another. Under current rules, most companies translate, but DON’T remeasure. check_circle Under FASB 842 and IFRS 16, the ROU asset is a non-monetary asset, while the liability is a monetary liability. This is a COMPLETELY different concept than under current rules. The ROU asset needs to be remeasured from transactional currency to functional currency using the "historic currency rates", THEN it needs to be translated from functional currency to reporting currency using current currency rates.

Multi-Currency

The ability to store multiple currencies per lease, including local,functional, & reporting check_circle The software needs to have 3 currencies: Transactional Currency, Functional Currency and Reporting Currency. Having this functionality enables the software to perform not just translations, but re-measurements as well, which is REQUIRED under Topic 842 and IFRS 16.

Software Functionality

You’ll find many companies that offer lease accounting software. But most don’t have the functionalities you need to comply. And while you may be tempted to use Excel, spreadsheets come up short. These 18 features are critical to complying with the new standards.

Functionality Brief Description LeaseQuery Spreadsheet Why is this functionality critical for FASB 842 and IFRS 16 compliance?

Accounting & Operational Tools

13 Period Calendar

Ability to load your unique calendar requirements, accommodating varying fiscal calendars. check_circle check_circle Industries such as retail have 13 period calendars, and fiscal years can begin in a month other than January. In a 13 period calendar this means that expense reporting in each period is not the same. The software should provide this flexibility and allow companies to match rent expense to their appropriate period, not force them to adopt a 12 month calendar period.

Useful Life Charts

Allows companies to elect standard useful life amounts by classification of asset check_circle check_circle The software needs to allow global control for determining the useful life as this is critical to determining lease classification accurately.

Central Repository & Ease of Document Retrieval

Being able to access and download any document related to the portfolio of leases check_circle For ease of reference, the software needs to enable the user to view the actual source lease contract, thus enabling your auditors to easily access the information for verification purposes.

Alert Notifications for Lease Deadlines & Renewals

To ensure renewal options, payment increases, start dates, end dates, etc. are not missed that could cause unnecessary incremental costs. check_circle When leases lapse, your payments can increase. A “small” monthly increase of $1,000 over a typical 5-year lease results in a total extra payment of $60,000!

Three Options for IFRS

Ability to adopt IFRS 16 standards using any of the three optional methods check_circle FACT: There are two methods to adopt for IFRS: full retrospective and cumulative approach. LESSER KNOWN FACT, there are two options for adopting the cumulative approach. The software needs to calculate all three methods by each individual lease.

Disclosures

Provide accurate and complete disclosures under FASB 842 and IFRS 16 check_circle There are numerous disclosure requirements under the new lease accounting standards. The software needs to provide a one-page summary showing you the COMPLETE disclosures required under FASB 842 and IFRS 16 ON ONE PAGE so that compliance is as simple as a copy and paste exercise.

System Intelligence

Calculates the ROU asset and lease liability

Accurately calculate the short and long-term lease liability, while also amortizing the right of use asset check_circle check_circle The right of use (ROU) asset, is NOT amortized using the straight-line method. Unless, it is impaired. The software must be sophisticated enough to first amortize the ROU asset as a portion of rent expense, determine if impairment exists, and if it does, amortize the ROU asset using the straight-line method. The software needs to be able to do both, and know when to use either method.

Contingent Rent

Ability to handle contingent rent (for instance, percentage rent, usage rent, or royalties) check_circle check_circle Leases may include payments based on contingencies, for instance, a percentage of sales or usage. The software needs to provide the total rent (including contingent rent), but also needs to ensure that contingent rent is never included in your lease liability or ROU Asset.

Lease and Non Lease Components Assessment

Ability to separate the lease and non lease components by classification of asset check_circle This is one of the most misunderstood practical expedients available. Most companies are reflexively electing to separate the lease and non lease components based on a misinterpretation. The software needs to be able to show them the CORRECT IMPACT of separating or combining the lease components.

Practical Expedients

Electing or not electing the available practical expedients. check_circle The software needs to have the policy/company-wide ability to elect the three practical expedients that have to be selected together and the other two practical expedients that could be selected separately.

Borrowing Rate Charts

Ability to assign a borrowing rate for different lease terms, currencies, and subsidiaries of the lease portfolio check_circle The boards specifically stated that for the discount rate, it's NOT a one size fit all. For instance, a lease denominated in US dollars would utilize a different discount rate to calculate the lease liability than a lease denominated in a highly inflationary currency. Your software needs to be powerful enough so that your discount rates for each currency, subsidiary, and lease term can be centrally controlled (preferably by your treasury department).

Data Integrity

Data Entry Validation

Two step approval process to review inputs and ensure completeness and accuracy check_circle For accountants, to err is human, to forgive is against FASB policy. The software needs to have some sort of data validation for SOX compliance. There has to be segregation of duties. One person to enter information, and another person to approve.

Lease Change History Documentation

Easily Retrieve who made the change, what was changed, who approved it check_circle For auditing purposes, the software must be sophisticated enough to provide an audit trail for each and every change made to each and every lease in the software. At a minimum, who made the change, the previous value, the new value, who approved the change, and when the change was made. This functionality ensures accountability, compliance with SOX and decreases the risk of material misstatement in your financial statements.

Role Based Access by Subsidiary/Location

Ability to place controls around which leases users have access to check_circle Most global organizations want to restrict access to only the jurisdictions that they are responsible for. You don't want your controller in Europe making changes to your leases in the US. The software needs restrictions on who has access to what based on their role and/or location. Without this functionality, errors would be easier to introduce to your data.

Duplicate Prevention

Ability to prevent duplicate leases in the software, based on unique characteristics check_circle Unique identifiers don't prevent the same lease from being entered twice. For instance, a unique identifier won't prevent the same lease entered differently as "corporate headquarters" or "corporate HQ". So, the software needs to use other means to ensure duplicates are not introduced.

Locking Journal Entries

Ability to freeze entries in the software for auditing purposes, as well comparing what was posted to what should have been posted. check_circle Transactions may occur in the field but the accounting department gets the information after the books have been closed. The software needs to be able to freeze the journal entries that were posted, identify the adjusting entries, and post the differences in a subsequent period.

International Considerations

Translation & Re-measurement

To translate amounts from one currency to another, AND remeasure balances from one currency to another. Under current rules, most companies translate, but DON’T remeasure. check_circle Under FASB 842 and IFRS 16, the ROU asset is a non-monetary asset, while the liability is a monetary liability. This is a COMPLETELY different concept than under current rules. The ROU asset needs to be remeasured from transactional currency to functional currency using the "historic currency rates", THEN it needs to be translated from functional currency to reporting currency using current currency rates.

Multi-Currency

The ability to store multiple currencies per lease, including local,functional, & reporting check_circle The software needs to have 3 currencies: Transactional Currency, Functional Currency and Reporting Currency. Having this functionality enables the software to perform not just translations, but re-measurements as well, which is REQUIRED under Topic 842 and IFRS 16.

Reports

LeaseQuery provides all the reports and disclosures required by your auditors and regulators out of the box. And if you need a report that you don’t see here, it’s easy to create any custom report you want.

ASC 840 Reports

  • Asset Balance Rollforward (Capital Leases Only)
  • Commitments Disclosure Report (MD&A) for Capital
  • Commitments Disclosure Report (MD&A) for Operating
  • Commitments Disclosure Report (Notes) for Capital
  • Commitments Disclosure Report (Notes) for Operating
  • Depreciation Expense Rollforward (Capital Leases Only)
  • Interest Expense (Capital Leases Only)
  • Liabilities Rollforward (Capital Leases Only)
  • Payment Expense (Capital Leases Only)
  • Deleted Leases Report
  • Lease History Report
  • Percentage Rent Settlement Report

ASC 842 Reports

  • Amortization of ROU Assets – Finance Leases
  • Finance Lease – Financing Cash Flows
  • Finance Lease – Operating Cash Flows
  • Interest on Lease Liabilities – Finance Leases
  • New ROU Assets – Finance Leases
  • New ROU Assets – Operating Leases
  • Operating Lease Cost (Cost resulting from lease payments)
  • Operating Lease – Operating Cash Flows
  • Short-term Lease Cost
  • Sublease Income
  • Variable Lease Cost (Cost excluded from lease payments)
  • Weighted Average Discount Rate – Finance Leases
  • Weighted Average Discount Rate – Operating Leases
  • Weighted Average Lease Term – Finance Leases
  • Weighted Average Lease Term – Operating Leases
  • Complete Disclosures Report

Our Clients Explain Our Lease Accounting Solutions Best

"It took a time-sucking, life-sucking process and turned it into the click of a button"

Trista — Controller at National Healthcare Organization

"LeaseQuery is years ahead of our external auditors in terms of lease knowledge and financial reporting, saving our company time, money, and resources."

Sarah M. - Tupelo Honey Hospitality Corporation

"We are able to instantly pull up all of the details on any given lease with only a couple of clicks. "

Missy W. - Scotland Wright Associates

 

"The time and productivity savings cannot even be put into words for a team with such stretched bandwidth like ours."

Trista L. – PT Solutions

 

"This is a breath of fresh air for an occupation that’s usually treated with bored stares, long sighs and slow blinks...I was actually liking lease accounting for the first time in eight years."

Anna K. – Publicly Traded Insurance Company

 

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