The proposed changes to lease accounting under generally accepted accounting principles (GAAP) will require more technology and resources than many lease administration departments and accounting firms are equipped to deal with. Visual Lease is prepared to keep you ahead of the curve by minimizing the impact of these changes.

Lease Administration Software

Visual Lease will begin building the required functionality in Q2 2011 to include:

• Asset and Liability calculations – initial and annual liabilities
• Determining the longest possible lease term that is more likely than not to occur
• Estimating percent rent payments during future option periods likely to be exercised
• Application of lessee or lessor’s incremental borrowing rate
• Calculating the amortization expense for the right-of-use Asset on a systematic basis over the expected lease term or the useful life of the underlying asset if shorter
• Annual reassessments of the Asset and Liability

Lease Abstracting

• Abstraction of financials, critical dates and clauses
• Lease File Organization
• Lease Data Verification and Audits

Consulting Services

• Segregation of costs in modified gross leases: services vs. rights-of-use
• Developing alternate scenarios and estimates for contingent lease charges and future options
• Performing annual reassessments of the carrying amount of the liability to make lease payments