Event: July 27, 2017, 12:00 PM to 8:00 PM Pacific Time (Topgolf in Roseville, CA)
I want to invite you to a free one-day Facilities Management event at Topgolf in Roseville, CA, outside of Sacramento, CA. Whether you are an IBM TRIRIGA or IBM Maximo user, these sessions will provide you with best practices to implement into your organization. Session topics include:
- Using Projects to Assemble Financial Data
- Making the Most of Key Performance Indicators to Measure What Matters
- Using Facility Condition Assessment to Manage Your Assets & Maintenance Budgets
- Capturing Required Inspection Data Electronically to Ensure Organizational Compliance
- Asking the Experts
- Networking Made Easy with Topgolf
This event has a limited number of seats so first come first served! Please RSVP here. Download the PDF agenda here. If you have any questions, please reach out to us at firstname.lastname@example.org.
[Admin: This post is related to the 02.06.15 post about exploring the TRIRIGA user group community. To see other related posts, use the Community tag.]
Did you know the following?
- Store leases comprise 10% of total business costs in the retail industry.
- The number of online shoppers will increase from 1.5 billion in 2016 to 2 billion by 2019.
- At least 100 million customers are expected to shop in augmented reality by 2020.
IBM TRIRIGA provides a robust platform to manage the entire store lifecycle process and takes your real estate operational processes and workflow to the next level. It provides financial analysis and evaluation of your real estate transactions by evaluating and comparing site locations across geographies.
IBM TRIRIGA is a single technology platform and database repository with automated process workflows, pre-built performance metrics, and environmental and energy management functionality. The solution drives a three-fold value proposition to improve financial, operational, and environmental performance.
You can use IBM TRIRIGA for:
- Consolidating historical RE databases and spreadsheets into one integrated system.
- Improving lease accounting and administration.
- Capital program planning.
- Retail site selection.
- Performance analysis.
- Business Intelligence…
[Admin: To see other related posts, use the ValuD tag or Retail tag.]
In early 2016, the US Financial Accounting Standards Board (FASB) and the International Financial Accounting Standards Board (IASB) issued new lease standards, which require companies to include lease obligations in their balance sheets. The new standards take affect 1 January 2019 and will impact all companies that have leases for real estate or equipment and file financial statements…
For many years, IWMS software providers have provided real estate, leasing, and portfolio capabilities, which include modules that integrate details of leases and contracts with existing financial and accounting systems to provide a central database for real estate financial planning and analysis and to create the correct entries for the accounting system. The new FASB/IASB accounting standards bring the spotlight on the role of software in managing leases.
A review of the deals in the public domain shows that providers such as Accruent, Lucernex, and Qube are already swooping in on opportunities to help companies mitigate risk by ensuring compliance to these new leasing standards. In the last few months, Lucernex has announced several new contracts with retailers such as Bouclair, DXL, Bashas’ Family of Stores and Suburban Propane. Accruent has been selected by CTIL, Tillys and Sephora in just the last few weeks. We are also witnessing other IWMS vendors improving their capabilities for accurate lease calculations in accordance with the new lease accounting standards. For example, in April, Planon software received validation from a Big Four accounting firm that its leasing calculations engine was in accordance with the IASB/FASB requirements…
[Admin: This post is related to the 08.01.16 post about the competitors of IBM TRIRIGA. To see other related posts, use the FASB tag or IFRS tag.]
With the emergence of new workplace models and technologies, we are starting to see a shift away from traditional Integrated Workplace Management Systems (IWMS) to stand-alone software systems integrated through common APIs in order to achieve true best of breed capabilities across multiple service needs. In fact, one of the original founders of the IWMS concept, Michael Bell, has defined this shift as IWMS 2.0. According to Mr. Bell, IWMS 2.0 has the potential to achieve lower costs, faster implementation and valuable data-driven insights…
At Lighthouse.io, we are strongly aligned with Michael Bell’s IWMS 2.0 vision. We are focused on solving very specific challenges for facilities managers… For a facility manager, these challenges form only one part of their overall remit. Whilst it’s tempting to build out a system that covers the entire facilities management function, we realize that by doing so we would be sacrificing the quality of our core product. Therefore, our preference is to integrate with complimentary products that are best of breed and solve a different set of challenges for facilities managers.
To illustrate the IWMS 2.0 model in practice, let’s explore how Lighthouse.io could integrate with another best in breed software product – Serraview. Serraview is a leader in space planning and management. Lighthouse.io is a leader in commercial cleaning software and optimizing delivery of facilities services. Combined, these two products can provide facility managers with an end-to-end solution for managing employees, assets, and delivery of facilities services…
[Admin: This post is related to the 08.01.16 post about the competitors of IBM TRIRIGA. To see other related posts, use the Serraview tag.]
We have a number of existing enterprise TRIRIGA customers who are retaining their lease data in TRIRIGA (their investment), but using a connected, low-cost, cloud-based solution for lease accounting. The good news is that it works, it’s easy, it’s lower cost, and in production today with Fortune 100 customers with large TRIRIGA investments. Let me know if you have an interest in moving into a lease accounting solution in a low-cost way, while preserving your TRIRIGA investment.
CoStar Lease Accounting Setup for ASC 842 and IFRS 16 Compliance
- 1. Connect existing lease management systems with our proprietary Data Connector. You can retain investments in existing lease systems and take advantage of our proven lease accounting functionality while avoiding the costs of upgrading enterprise software.
- 2. Migrate all existing lease data with our integrated Lease Administration System. You can upgrade existing systems to the smart choice for lease accounting and management, provide access to an unlimited amount of organizational users and departments, and save on long-term costs associated with multiple systems and upgrades.
[Admin: To see other related posts, use the FASB tag or IFRS tag.]
In principle, every organisation is made up of four production factors: the capital, the people who work there, technology, and information (data). The real estate manager’s role in the organisation is becoming steadily more significant, partly because of the disruptive changes in Corporate Real Estate. One might suggest that real estate can now be regarded as the fifth production factor. How does a real estate manager gain control over his biggest cost item: the real estate portfolio?
Striking a balance
As a new and fifth production factor, real estate plays an important role in your organisation. Did you know that Corporate Real Estate (CRE) represents on average around 20-25% of a balance sheet? That 60% of organisations lack transparency in their real estate portfolios? And that no fewer than 2 out of every 3 real estate managers lack control over their real-estate-related processes? It’s up to the real estate manager himself to make a positive change to these statistics, and to tackle the challenges that lie ahead…
The world is changing
From 1 January 2019, publicly listed companies are required to include on their balance sheets any rental contracts that run for longer than a year. With the introduction of the new lease accounting standards, the debt position on your balance sheet could rise by up to 20%. These new regulations therefore exercise a direct influence over your portfolio strategy. Accurate administration, reliable calculations and compliant reports are an absolute necessity. The need to regain control over your real estate will be made all the more urgent by the disruptive changes currently occurring in the world around us…
[Admin: To see other related posts, use the Planon tag or Leases tag.]
It has now been well over a year since both the FASB and IFRS have finalized their guidance on the future of lease accounting which is effective beginning in 2019 for publicly traded companies. The tasks to move a company’s leases onto their balance sheet can be overwhelming, considering all the necessary steps to reach this goal. Fortunately, the lease classifications have not drastically changed.
US FASB Topic 842
The US FASB Topic 842 will continue to allow for lease classification as either “Operating” or “Finance” (previously considered “Capital” leases under Topic 840). However, a fifth criteria was added to the existing four possible criteria that could render a “Finance” classification. In addition, the prior bright lines from Topic 840 no longer exists. The new standard will require more judgement, but also allow more flexibility in the classification decision.
If any one of the five following criteria are met, a lease is considered a “Finance” lease. If none are met, the lease is considered an “Operating” lease:
- Ownership of the underlying asset transfers to the lessee by the end of the lease term.
- The lease continues a purchase option, which the lessee is reasonably certain to exercise.
- The lease term is for a major part of the remaining economic life of the underlying asset.
- The present value of the lease payments and any residual value guaranteed by the lessee is greater than or equal to substantially all the fair value of the asset.
- The asset is of such a specialized nature that it will not have an alternative use for the lessor at the end of the lease term…
No matter which lease classification is determined, both types of leases will require a right of use (ROU) asset and a corresponding lease liability (LL) to be calculated and presented on the balance sheet…
One of the major differences between US FASB Topic 842 and IFRS 16 is the classification of all leases under IFRS 16 as “Finance” leases. A lease classification test will not be the determining factor of whether a lease will be presented on the balance sheet. Instead, any lease contained in a contract must be reflected on the balance sheet as a financing arrangement…
[Admin: To see other related posts, use the FASB tag, IFRS tag, or ROU tag.]