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)