Issue link: https://resources.tangoanalytics.com/i/1465847
STRATEGIC STORE LIFECYCLE MANAGEMENT SMARTER STRATEGIES. FASTER EXECUTION. I www.tangoanalytics.com I PAGE .6 The changes will take effect in 2019 for public companies, concurrent with the implementation of the IASB standards. Private companies have an additional year to comply with the new standard. These new regulations require EVERY restaurant and retail company to have access to all the necessary lease data to ensure compliance and to understand the impact this will have on their company. As such, it compels EVERY restau- rant and retail company to take a very hard look at their existing lease administration solution provider, and deter- mine if staying with the same old solution - and taking an upgrade of new functionality to meet these standards - is worth the cost and time associated with what amounts to a re-implementation. Or is it time to look at alternative that better meets their needs? What's forthcoming will not only involve new calculations for these companies, but will also require a holistic view to transition current portfolio. This work is significant, and it will dominate efforts by lease administration teams in the coming months. Implementation of the new accounting standards is set for 2019, and early adoption is encouraged. And retroactive adoption will be required for 2016, 2017 and 2018, so time is of the essence. Issues surrounding the new FASB standards have been both underappreciated and under-discussed. In the short term, businesses will need to understand how the new ruling affects them. The financial impact to their business can't be overstated, so it needs to be right. Lease administration departments are under pressure to help their senior management understand the implications sooner rather than later. Companies that are currently utilizing a lease administration solution must determine if it can be adapted to meet the new requirements. This regulatory change will involve undertaking a full upgrade, not dissimilar to a new implemen- tation. This change presents an opportunity not only to reassess the capabilities, limitations and costs of the incum- bent system, but also the vendor and the services they provide. . A NEW PERSPECTIVE ON LEASE ADMINISTRATION It is now obvious that while there are changing forces – both internally and externally – affecting lease administration solutions, the available options simply miss the mark. Why Now is the Time to Change. Industry consolidation has diverted focus away from customers and their requirements Existing functionality is 15 years old and staying that way The needs of the user have been long ignored Strategic lease information is underleveraged and opportunities are missed Existing solutions are costly New lease accounting regulations will require everyone to re-implement their solutions to comply 6 5 4 3 2 1