FASB ASC 842 Compliance doesn't have to be complicated.
Quarem makes it simple.
The scope of ASC 842 is intricate and packed full of complicated details that leave many feeling like they need an accounting degree to navigate through the process. While it's important for organizations to dedicate time to learning the ins and outs of ASC 842, they should also know that they don’t have to do it alone.
Working through the ASC 842 compliance process alone is like erasing the numbers on a paint by numbers set – you can certainly complete the picture, but in order to mirror the image on the box, you’ll need a helping hand along the way. That’s exactly what Quarem can be for you.
The Quarem team has dedicated countless hours to understanding the ASC 842 standard. We have worked closely with industry consultants to ensure that our software provides a sophisticated and powerful lease accounting tool, and that our team is knowledgeable enough to transform ASC 842 into a straightforward concept for our clients.
Quarem has all your international leases covered too. All the magic that Quarem has built-in to make FASB compliance a snap, is ALSO available for IFRS 16 compliance.
The core of ASC 842 is the recognition of the assets and liabilities that arise from leases. In this case, a lease is a contract that expresses the right to use an identified underlying asset, which can be a property, plant or equipment. The lessee has the right to use the asset for a certain period of time in exchange for consideration.
So, what does this mean for your lease accounting processes? It all starts with the lease set-up, which includes:
One of the great things about the Quarem Vantage lease accounting feature is that you don’t have to worry about memorizing the list of classification characteristics. The software provides you with a helpful popup checklist that lets you quickly classify your lease.
Once you have created the payment schedule for the term of the lease, you have to calculate the ROU, build the amortization table and generate the corresponding journal entries. With Quarem Vantage, you no longer have to spend long hours in Excel building the perfect formula for your leases. The software does all of the complicated calculations for you and captures all of the important key details such as:
The driving force behind the ASC 842 guidance update is total accounting transparency that is supported by a complete understanding of an organization’s leasing costs and how they are funded. Thus, entities heavily rely upon income and expense reports that are accurate, timely and accessible.
One of the greatest values of the Quarem Vantage lease accounting feature is the detailed and fully customizable reporting. All authorized activity is recorded per the accounting guidelines in order to ensure accuracy. Reporting metrics include: