ValuD: What is TRIMAX and why should you attend?

Conferences and trade shows provide a great way to learn and discover industry trends in a short period of time. Please consider attending TRIMAX this year…

What is TRIMAX?

TRIMAX is an annual conference which provides a forum for participants to share knowledge and learn from other TRIRIGA and Maximo clients, business partners and IBM leaders. If you are a RE/FM/EAM business, then TRIMAX is the event for you. This year’s event is being held at Arlington, VA on November 29th and 30th with an optional training day on December 1st. More than 600 participants are expected to attend the various presentations and sessions.

Why attend TRIMAX?

IBM TRIRIGA and IBM Maximo are leaders in asset management and IWMS application software and TRIMAX is the only user group with a combined focus for both. Naturally, such a focused user group can give you insights on product updates, solution road maps, and industry best practices…

ValuD and TRIMAX

With the largest and most experienced group of TRIRIGA consultants in the world, ValuD has been an active participant of TRIMAX since its inception. This year, our sessions will showcase MobilD, our mobility solution built exclusively for TRIRIGA…

• “TRIRIGA Mobility Solution (MobilD) Tailored to Drive Work Efficiency – A User Perspective” | Speaker: Kiel Schmitz, ValuD | Wednesday, Nov. 29, 2017, 1:10 PM – 2:00 PM
• “New Capabilities of TRIRIGA FASB/IASB & Advanced Lease Accounting” | Speaker: Kirk Howcroft, ValuD | Friday, Dec. 1, 2017, 8AM – 3PM

[Admin: This post is related to the 07.18.17 post about ValuD at TRIMAX 2017, and the 07.28.16 post about mobilizing IBM TRIRIGA. To see other related posts, use the ValuD tag or MobilD tag.]

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How does TRIRIGA tackle 2019 lease accounting change implications?

Are you getting ready to address the implications of the new lease accounting changes with TRIRIGA? Although FASB’s ASC 842 and IASB’s IFRS 16 will take effect in 2019, many organizations are only now beginning to realize the amount of effort required to meet the new standards…

The biggest changes to businesses will be the new Right of Use (ROU) Assets and Lease Liabilities that will hit balance sheets, as well as the intensely manual approaches and effort that many see before them. How many organizations are leveraging Integrated Workplace Management Systems (IWMS) to manage their real-estate holdings and automate these manual efforts?…

In order to help organizations comply with the new standards, and understand the implications of these changes, TRIRIGA continues to deliver a single integrated workplace management system with new enhancements in the next release. TRIRIGA supports the lifecycle of facilities management and will automate compliance activities to address changes that affect multiple teams and roles.

Here’s how TRIRIGA can help:

• CFO and CAO: The release of IBM TRIRIGA 10.5.3 will provide a sub-ledger system for real estate and asset lease accounting that is able to generate journal entries out-of-the-box for ASC 840 and ASC 842 under US-GAAP as well as for IAS 17 and IFRS 16. It also covers period closings and report generation for the most common reports required under the new standards.
• Real Estate and Fixed Asset Managers: The release of IBM TRIRIGA 10.5.3 separates the duties of a lease administrator and a lease accountant, allowing the lease administrator to enter contractual information, and then enabling the lease accountant to run classification tests, reassess lease decisions, and report on the ROU Asset and Lease Liability.
• Facility Management, and Occupants: There are also new capabilities to improve day-to-day and occupancy experience. They can leverage a new Workplace Services offering that engages everyday employees through new mobile web apps that provide access to services managed by IBM TRIRIGA, anywhere, and on any device. This includes: a new Service Request app to submit work requests, a new Reservation app to quickly create reservations for individual workspaces or multi-attendee meeting rooms, and a new location-aware Workplace Services Portal to provide a single, unified access point for launching the apps and tracking status of requests…

[Admin: To see other related posts, use the FASB tag or IFRS tag.]

IV95963: Issues with lease partial payments and massive values

In TRIRIGA 10.5.2, the following issues have been seen:

• (1) When capital leases start and end in the middle of a Semi-Annual, Annual, Quarterly, or Monthly payment period, the first and last period amortization in the fiscal line item (FLI) is not prorated correctly. As a result, the Day 1 right of use (ROU) is incorrect.
• (2) Massive amounts are appearing in the Capital/Finance Schedule. The Interest Expense, Change in Liability Value, P&L Book Expense, Liability Value, and Net Equity fields are displaying massive amounts, like in the quintillions, even though the total rent is $240K.

We needed to fix the partial payment issue for the current and new lease accounting standards. Moving forward, we fixed an issue that when capital leases start and end in the middle of a Monthly, Quarterly, Semi-Annually, Annually payment period, the first and last period amortization in the FLI is not prorated.

[Admin: To see other related posts, use the Payments tag.]

Verdantix: Who are benefiting from the changes in lease accounting?

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.]

IV96394: Revision to ROU asset when modifying “Finance” RE lease

When a “Finance” (or “Capital”) lease is modified, the new ROU asset balance should be calculated in the same way as future accounting “Operating” lease modifications, that is, the amount of change in the liability balance is added to (or subtracted from) the prior-period ROU asset balance immediately preceding the modification.

Note that this calculation should mirror the calculations that were implemented in TRIRIGA 10.5.2 for future “Operating” lease modifications. Currently, we see that the asset balance is set equal to the re-measured liability balance upon a modification.

Moving forward, when a “Finance” (or “Capital”) lease is modified, the new right-of-use (ROU) asset balance is now calculated correctly. The amount of change in the liability balance is added to (or subtracted from) the prior-period right-of-use (ROU) asset balance immediately preceding the modification.

[Admin: To see other related posts, use the ROU tag.]

IV96316: Initial liability carryover balance is not applied

For TRIRIGA 10.5.2/3.5.2 OOB, there is an issue with the “Initial Liability Carryover” (ILC) field. In both operating leases and capital leases, when a value is entered in this field, the right of use (ROU) asset in the future accounting schedules is not reduced at Day 1 (against lease liability (LL) and initial direct costs (IDC)).

• What should happen: Day 1 ROU = Day 1 LL + IDC – Initial Liability Carryover.
• What is happening now: Day 1 ROU = Day 1 LL + IDC. (No ILC is applied.)

The balance in this ILC field should get pulled into the Day 1 ROU asset balance, and it currently does not. If this field is functioning per OOB, then we need to fix it. It is critical that the transition to the new accounting standards is calculated correctly.

The initial carryover balance (ICB) was not applied to new accounting schedules. Moving forward, if leases are created on or after the look-back period, the initial carryover balance will now be applied to operating leases and finance/capital leases.

[Admin: A similar article is also posted in the IBM TRIRIGA blog. This post is related to the 07.27.16 post by ValuD about handling GAAP and IFRS in TRIRIGA leases. To see other related posts, use the ROU tag.]

CoStar: What is the CoStar Data Connector for Lease Accounting?

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.]