Functional Requirements for Lease Accounting Compliance

This document is a guide that outlines the top six functional requirements necessary for achieving compliance with lease accounting standards, specifically ASC 842 and IFRS 16. It begins by referencing a survey conducted by PricewaterhouseCoopers (PwC) involving over 900 finance professionals, which revealed insights into the challenges organizations face in meeting compliance deadlines. The survey highlights that many public companies are still working on their lease accounting system implementations, despite having gone live under the new standards. Key functionalities identified as lacking in existing lease accounting solutions include dual GAAP reporting, workflow functionalities, day two accounting, forecasting and analytics, integration with other systems, and reporting or disclosure requirements. The guide emphasizes the importance of selecting a lease accounting solution that addresses these gaps, particularly for organizations managing large portfolios of leased assets. It also discusses the complexities introduced by the new accounting standards and the need for robust software solutions to facilitate compliance.