Taking a second look at your Lease Abstracts from the ASC 842 Compliance Perspective

 

The ASC 842 regulations bring a lot of changes to the way leases are treated in financial statements and books of accounts. In this blog, we outline the key challenges businesses face when embarking on their FASB compliance journey. 

Scope of work

While businesses know compliance with the updated FASB regulations entails having to reassess their books of accounts, many tend to underestimate the scope of work. There is a feeling that they have all the data they need and it is just a matter of restructuring it to suit the ASC 842 regulations. However, the ASC 842 regulations require a lot more than just data restructuring and the compliance process is much more time-consuming and labor-intensive than accounted for. As companies get started with the compliance process, they realize that they were mistaken. A lot of them struggle with data in complex spreadsheets that make it difficult to make sense of the vast amount of information contained therein. 

Inaccurate or outdated lease abstracts

Even businesses that have lease management systems in place find that sometimes they are not on top of their lease portfolios and the information in their lease abstracts is outdated and virtually useless. Also, the FASB regulations have brought about changes to the typical lease abstract templates by adding to the data points, making it necessary to include new information to the existing lease abstracts. These data points sometimes do not even exist in the original lease. They may be in the form of email communication, side letters, and other correspondence, which may have not been considered at the time or original abstraction.

Expertise

As discussed above, making your lease abstracts meaningful from the FASB compliance perspective entails a significant lease abstraction template redefinition–something that only an experienced lease abstraction vendor, with in-depth knowledge, perspective, and expertise into the lease abstraction process will be able to offer. 

Scaling to meet the timeline

The FASB compliance process comes with a definite timeline that needs to be adhered to. Also, after you get your leases in order and update your lease abstracts to reflect the information you need for your books of accounts, you should still consistently audit and update your lease abstracts at regular intervals to ensure you stay compliant. 

Bringing a trusted lease abstraction services provider on board can help you mitigate all these challenges effectively, efficiently, and meet your compliance requirements on time. 

Rebolease.com, powered by RE BackOffice, Inc., is a premier provider of lease abstraction, administration, and accounting services. Headquartered in Pittsburgh, PA, we are a global boutique firm, providing high-quality services to top-tier clients across industry verticals, covering every type of lease and on any lease platform. We are proud to be a trusted partner, for 15+ years, to leading retailers, REITs, property owners/managers, and corporate accounts seeking a strategic advantage. All client projects are performed in-house. Please contact us today to learn more.  

RE BackOffice Celebrates 15 years of Excellence as a Global, Comprehensive & Trusted Commercial Real Estate Service Provider

The company has also launched a new website, www.rebolease.com dedicated in entirety to its lease abstraction, administration and accounting services

23rd March 2021: Pittsburgh, PA: Leading commercial real estate services provider, RE BackOffice, celebrates 15 years in business this year. The Pittsburgh-based company was founded in 2006, with a mission to deliver exceptional real estate marketing and lease services at affordable prices. Over the years, RE BackOffice has grown from a 20-member firm to an organization with 250+ professionals who are committed to providing the highest quality real estate marketing, lease abstraction, administration, and accounting services. 

RE BackOffice is renowned for being a boutique firm, engaged in consistently driving value, delivering first-class results, and exceeding client expectations. As a global, comprehensive, and trusted commercial real estate services provider, RE BackOffice serves top-tier clients across various industry verticals including retail, corporate, tower, healthcare, REITs, property owners, managers, etc. Over the years, RE BackOffice’s client base has grown exponentially. 7-Eleven, Sleepys, Crown Castle, CBRE, H&M, and JLL are a few of the many leading brands served by RE BackOffice. 

We are proud to complete 15 years in business and to be internationally recognized as the industry leader in commercial real estate services. The unmatched quality of our services, backed by our sound processes, industry knowledge, tech expertise, agility to adapt to the industry’s needs, and energetic work culture has been our core strength throughout the years. We are thrilled to have reached the 15-year milestone and are looking forward to an even more exciting decade ahead”, says Manu Varghese, VP, Operations. 

“15 years is a landmark anniversary! On this occasion, I would like to extend my thanks to our clients for placing their trust in RE BackOffice. I would also like to express my gratitude to our team for their dedication to helping REBO attain our goals as an organization. I’m looking forward to many more years of adding value to our clients.”, says Lyselle D’Souza, VP of Marketing Services. 

“As we celebrate this milestone anniversary, I want to recognize and share my appreciation for the commitment, talent, and spirit of our unique team who make this remarkable journey possible.  In addition, the entire RE BackOffice team wants each one of our clients to know that we are sincerely grateful for the continued trust you place in us. Trust, accuracy, reliability, and exceptional customer service are and will continue to be the cornerstones of our success.  We look forward to building on this solid foundation in the years to come, serving our customers large and small, across all industries.”, says Holly Khera, CEO, RE BackOffice. 

On this milestone anniversary, RE BackOffice has also launched a new website, www.rebolease.com, that focuses on RE BackOffice’s lease abstraction, administration, and accounting services business. The new website is easy to navigate and has dedicated pages for each lease service it offers and for the major industry verticals that the company serves. Please visit www.rebolease.com for more information.