ATLANTA–(BUSINESS WIRE)–LeaseQuery announced today the release of its Embedded Lease Tool, an interactive resource that enables companies to comply with the new lease accounting standards, FASB Topic 842 / IFRS 16, set to go into effect in January 1, 2019. The new standards, released by the Financial Accounting Standards Board, require that companies accurately record leases that are embedded in service contracts, representing a departure from the previous standards. LeaseQuery’s four-step tool simplifies the process of identifying those leases.
Many companies don’t know if their service contracts contain embedded leases, and they are unsure of how to identify them. In a recent survey, more than 50 percent of accountants said that the most difficult leases to analyze are those embedded in service contracts and outsourcing agreements. If companies don’t properly record their embedded leases, they will be deemed non-compliant and can face fines and be required to restate their financials.
“Companies are really challenged by the new standards on embedded leases,” said George Azih, founder and chief executive officer of LeaseQuery. “Because of that, many are risking non-compliance by failing to properly record them. We created the Embedded Lease Tool to be both functional and educational. It includes technical guidance and information to help companies truly feel confident about identifying their embedded leases.”
The Embedded Lease Tool is one of several resources that LeaseQuery has created to help companies transition to the new standards. As the only lease accounting software made by accountants for accountants, LeaseQuery occupies a unique role in the lease accounting space as both a thought leader and software provider.
Recently named the fastest growing technology company in Atlanta by the Atlanta Business Chronicle, LeaseQuery has seen high demand for its software since the standards were released, reflecting a need for information and tools that ensure compliance.
LeaseQuery helps accountants and other finance professionals eliminate lease accounting errors through its CPA-approved lease accounting software. By providing lease accounting expertise, a software solution, and a proven implementation process, LeaseQuery enables companies across all sectors to ensure compliance with the most comprehensive lease regulatory reform in 40 years. It is the first lease accounting software built by accountants for accountants. For more information about LeaseQuery, visit LeaseQuery.com or call 1-800-880-7270.