- 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
- 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)