Lease Accounting

  • Financial recognition and reporting of the right to use an underlying asset for a period of time in exchange for consideration.
  • FASB Guidance requires the following Lease Accounting classifications to be identified for Financial Reporting:
    • The Lessees to classify leases as either Finance or Operating lease based on executed and approved lease agreements.
    • The Lessor to classify leases as Direct Finance, Operating Lease, or Sales-Type based on the executed and approved lease agreements.
  • All Private Business entities are required to be FASB ASC 842 compliant by December 15, 2021 (Fiscal Year), and December 15, 2022 (Interim Period within).

SLR/FASB 842 Entries

Mohr

Client

  • Generate SLR Reconciliation Reporting from Client Accounting system.
  • Create SLR rent journal entries and/or FASB 842 entries on a monthly basis per established monthly calendar and enter tenant allowance in FA system
  • Upload entries into ERP, maintain supporting schedules, and upload
    QR / Approve the SLR rent journal entries and/or FASB 842 entries on a monthly basis per established monthly calendar

Close Activities: Occupancy Related Accrual Entries

  • Determine required monthly accrual entries (new stores, real estate tax, cam, rent, landlord disputes, etc.)
  • Process the accrual entries on a monthly basis (open invoice accruals) per established monthly calendar
  • Perform final variance analysis including accrual entries
  • QR / Approve the monthly accrual entries per established monthly calendar

Post-Close Activities / Account Reconciliations

  • Carry forward prior month file and update to current month
  • Run GL activity report
  • Add supporting file to the reconciliations
  • Run GL Balance reports
  • Validate ending balances and add comments for variances
  • Upload reconciliation file
  • Generate final management reporting package post monthly close
  • Perform Balance Sheet and P&L reconciliation of applicable items (post-close – Audit support)