Changes to the balance sheet may affect contractual agreements or debt covenants. Organizations should work with lenders through the normal course of business to amend debt agreements, if necessary, before the standard is adopted to avoid losing access to financing.
The adoption effort revealed that for many companies, centralized access to all sorts of contracts—leases, revenue contracts, vendor contracts, and many more—is typically rare. These siloes can lead to missed opportunities.
Technology Could Slow Pace of New Accounting Rules, Regulators Say
"FASB Chairman (Russ Golden) said he was ‘disappointed’ that many software companies weren’t ready for lease-accounting rules."
CFOs can lead an innovation agenda around AI by showing stakeholders how investments can translate into value, whether that’s topline growth or some type of bottom-line efficiency.
The task is arduous and complicated: Accountants are scouring thousands of bills and contracts to determine if they must change. Tech departments are upgrading their systems and investing in expensive new software as they work to ensure their increasingly automated finance operations can keep up.
You’re an accounting team with 10… 100s…1000s of contracts to read.
Our software finds critical data within any contract type: sales, leases, complex vendor, employee agreements, financing & more.
90% of a business’s operational data is locked up in unstructured data, like PDF contracts. These are large, complex images.
Our software uncovers critical data points such as dates, financial transactions, options, events and risk- automatically.
Our software helps manage the end-to-end workflow for modern accounting leaders.
We generate critical data and workflows, including GAAP, IFRS & GASB ready data for your audit, close process, or ERP.
Illuminate a contract in < 10 seconds to detect critical data for GAAP & IFRS compliance, without having to enter data manually.
Accelerate your revenue recognition process by automatically extracting key data from the original contract and creating compliant entries.
Modernize your accounting process, connected to the original contract. Upload any lease to generate IFRS 16, ASC 842 & GASB 87 entries.
According to a recent US business census, there were 5.8 million businesses registered in the USA. This includes everything from a 1-person marketing freelancer to Fortune 100 Company.
Under ASC 842 (and GASB 87 and IFRS16) you will need to collect those data points, along with options, escalations, CPI, incentives, allowances, improvements and other risk factors. These are real estate or equipment leases that lawyers or facilities experts may be familiar with, but not necessarily the accounting team.
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