FASB Lease Accounting Compliance at Top Bank
A change in accounting rules by the Financial Accounting Standards Board (FASB, ASU 2016-02, Leases (Topic 842)) meant a new system implementation was necessary to bring all lease obligations on-balance sheet. The client had approximately 750 real estate leases that required migration to the new purpose-built lease accounting software.
Conforming real estate lease information to new accounting rules was streamlined with an Alacer solution.
Previous operational challenges meant that lease attributes and payment schedules in the source system could not be relied on. The large amount of information extraction required and the manual nature of data extraction meant that control at each stage of the process was paramount. All lease information was manually verified to original lease documentation before transfer, with some leases handwritten and over 150 years old.
All lease information was completely and accurately transferred on a timely basis, and Alacer was retained to maintain the lease data on the new lease accounting system.