NetGain receives 'Built For NetSuite' certification making it the only certified NetSuite lease accounting solution available today.
November 26, 2018
With the new Lease Accounting Standards IFRS 16 and ASC 842 quickly approaching, NetSuite customers from both public and private companies are seeking solutions that will enable compliance. And while there are many third party solutions on the market, Netgain saw significant benefits to managing complex leases within the NetSuite platform.
We have recently received ‘Built For NetSuite’ certification from NetSuite for NetLease, a lease accounting SuiteApp that addresses the requirements of new lease accounting standards. We believe the 'Built For NetSuite' certification provides an important evaluation element for NetSuite customers sorting through the multitude of lease accounting solutions available today. NetSuite customers understand the value of leveraging SuiteApps that live directly within their existing NetSuite subscription.
We are Netgain Solutions, a team of CPA's, NetSuite, and lease accounting experts. NetLease for NetSuite is an enterprise-grade SuiteApp built specifically for NetSuite to streamline compliance with the ASC 842 and IFRS 16 lease accounting standards that become effective on January 1, 2019 for many organizations. NetLease provides an end-to-end lease accounting solution that produces the new disclosures now required under the new guidance.
The FASB noted in a press release that ‘Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months.
Consistent with current Generally Accepted Accounting Principles (GAAP), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease.
However, unlike current GAAP—which requires only capital leases to be recognized on the balance sheet— the new ASU will require both types of leases to be recognized on the balance sheet.‘
I've prepared a brief overview demonstration to help you better understand the specific compliance related challenges associated with ASC 842 and IFRS 16 that NetLease solves.
NetLease by Netgain addresses each phase of the lease accounting life-cycle including:
- Lease Transition
- Lease Initiation
- Lease Modification
- Early Termination
Some of the benefits of the NetLease lease accounting solution include:
- Built on NetSuite’s world class ERP platform to best leverage your existing investment and expertise in NetSuite
- Easy to use
- Cost effective
- Seamless compliance for ASC 842 and IFRS 16
NetLease Accounting Benefits
- Full visibility into right of use asset and lease liability calculation
- Manages complex leases: fixed payment, lease incentives, prepayments, rent holiday, deposits, renewal options, removal costs
- Tracking of non-GL leases
- Automated creation of monthly transactions as part of the period end close process
- Journal entries are linked within the amortization table
- Accounts for foreign currency leases
- Purpose built to produce disclosures required under IFRS 16 and ASC 842
- Captures non-financial data like Holdover Provisions, Renewal Options, Guarantors and Expected Lease Costs