STRATEGY POLICY INVENTORY DATA
SYSTEM PROCESS
CONTROL SUSTAIN
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tangoanalytics.com
ROAD TO LEASE COMPLIANCE
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DATA
Calculations under the new FASB
and IFRS standards can require up to 75 different data elements across all types
of leases – including real estate, equipment and embedded. Closing the data
gap while making sure your lease data is accurate, complete and clean is the
challenge. Avoid these 10 data traps to successfully navigate this stage of the
Road to Lease Compliance.
Top 10 FASB/IFRS Lease Accounting Data Traps
Data is stored in multiple decentralized
databases or physical files
The name of the game here is consolidation. Climbing the lease compliance
mountain and operationalizing compliance requires a single database to store
all lease administration and lease accounting data elements. Most companies
have done a decent job of tracking real estate leases in a single database.
Let's be honest, the same cannot be said for non-real estate leases such as
equipment leases, or the dreaded embedded lease. These leases are stored in
Microsoft Access, Excel or even outside the enterprise with 3rd parties. Focus
on cataloging all systems, their specific data sets and invest the time necessary
to map each data element to the new centralized database. Doing so will help
identify data gaps and create the foundation needed to automate the export,
transform and load (ETL) process.
Incomplete data picture for the new FASB/
IFRS calculations will require abstraction
More complicated leases may involve upwards of 75 data points to run the
necessary FASB calculations under the new standard. Multiply that number by
hundreds or thousands of leases and then you're quickly drowning in data.
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