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1 Copyright ©2021 Tango. All rights reserved. FASB ASC 842 & IFRS 16 COMPLIANCE | LEASE SYSTEM Introduction Let's face it, there's no shortage of lease accounting software solutions promising they will get you compliant with FASB ASC 842 and IFRS 16. The new lease accounting standards require careful guidance to ensure you have properly accounted for your real estate, equipment, and embedded leases. Here are our 7 best practices for selecting a lease accounting software vendor, gathered f rom first- hand experience with the new FASB ASC 842 and IFRS 16 standards. ONE. Select a lease accounting software that is tried and tested Partner with a vendor who has considerable experience providing lease accounting compliance software for both real estate and equipment leases. When engaging in lease accounting software comparisons, note that some software vendors are leveraging their customer base to test the validity, reproducibility, and effectiveness of their solution to ensure compliance. You aren't a guinea pig. You want a lease accounting software solution that has been third-party verified to comply with FASB ASC 842 and IFRS 16. TWO. Partner with the experts FASB ASC 842 and IFRS 16 are complex. From understanding your lease scenarios and what is in your leases today, to defining capital leases, to understanding the data the new standard requires – complying to the new standards demands true professional advice. Viable solutions have been fully vetted by third-party accounting firms and should be implemented by highly experienced professional services personnel with relevant knowledge and expertise – not technologists or junior resources. THREE. Pick a partner to grow with Lease accounting software reviews are a great place to begin the search for a partner to help you implement the new standard. Be on the lookout for partners who say the upgrade you need to ensure compliance will cost as much as it would to implement a full solution. Also, a long-term partner won't nickel and dime you. Key success factors like robust reporting and support should be part of the deal. If you made a rush decision in choosing a partner and you're unsatisfied, take this opportunity to compare accounting software vendors and find one that is interested in growing with you. Some key considerations for selecting a system include ensuring the system: supports dual reporting for US GAAP and IFRS, supports foreign currency needs, captures items required to support new disclosure requirements, supports tracking and recording of the impairment of the ROU Asset, etc. –Marybeth Shamrock, Advisory Lead for Leasing, KPMG "

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