Webinar: Thursday, September 14, 2017, 12:00 PM – 1:00 PM Eastern Time
Join ValuD’s Lease Accounting expert team in their Sept 14th webcast for “Best Practices of Implementing TRIRIGA for FASB Compliance” and get prepared to meet your FASB compliance deadline. Register here.
[Admin: The same announcement is also posted in the LinkedIn group. To see other related posts, use the ValuD tag or FASB tag.]
We are using TRIRIGA 3.5.2. We are currently experiencing an issue with lease document attachments. When one user uploads a document that has the same name to two different lease records, the document record is overwritten.
The issue stems from the fact that the upload functionality defaults the path to \ROOT\Object Attachments\[Employee Name]\triRealEstateContract\[File Name]. There is a folder ID parameter in the action URL, but it doesn’t seem to work. Is there a way for TRIRIGA to create a folder based on the current record ID instead of the BO name?
[Admin: To see other related posts, use the Document Manager tag.]
When an “Operating” lease is modified, the new ROU asset balance should be calculated as the amount of change in the liability balance that is added to (or subtracted from) the prior period ROU asset balance immediately preceding the modification. Previously, this was tested on 5/18 for any lease and then still worked appropriately. As of 6/13, this no longer works.
Moving forward, the starting ROU asset value is now calculated correctly when there is an amendment to an “Operating” lease. The changes were made to the following workflows: “triContract – Subflow – Likely Term – Calculate Amend Asset Value” and “triRealEstateContract – Synchronous – triRevise”.
[Admin: To see other related posts, use the ROU tag or Right of Use tag.]
Without a proper contract management repository, you and your organisation are at high risk and not in control of supplier obligations, associated costs, and contract terminations or regulatory compliance. A structured contract registration allows you to proactively manage suppliers, validate contract-related cost and performance, ensures timely contract cancellation or change, and delivers valuable information to improve contracting policies.
Setting up your contract management repository starts with an inventory of contract categories such as activity-based contracts, performance contracts or framework agreements and the contract applications such as maintenance, services, procurement, lease or any other. For any contract, you have to collect, register and maintain a set of basic data, such as:
- Internal information such as contract owner, department and cost centre.
- Supplier information such as company details, address and contact person.
- Contract status information such as active, in negotiation, for approval, or terminated.
- Date information such as start date, notice, end date or cancellation options.
- Asset reference, linking the contract to one or multiple assets in your asset repository.
On top of the basic data, the contract category determines the next level of contract data and information. For an activity-based maintenance contract, you have to register information about:
- The individual activities that are contracted.
- The timing and eventual frequency of the activities.
- The associated budget for the contract or fixed cost per activity.
As performance contracting is a completely different concept for outsourcing maintenance, the performance contract includes different types of data and information, such as:
- Performance definition in terms of availability and quality of assets.
- Detailed service levels, times to start and times to complete.
- Performance measurement methods, supplier bonus or penalty agreements, and billing parameters…
[Admin: To see other related posts, use the Planon tag or Contracts tag.]
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.]
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.]
If you look at the query “triFiscalLineItem – Display – Likely Term Type B – Associated To Current Record” in TRIRIGA 10.5.2, it is based on the [triCostItem] triFiscalLineItem BO and the [triCostItem] triLeaseFiscalLineItem form.
However, the report uses the triSLAssetValueNU (straight line) field for asset value (for Operating leases), while the form uses the triAssetValueNU field for asset value (for Capital/Finance leases). Which is correct? Shouldn’t both of these values be working from the same field? Or is one field calculated based on the other?
Both of these fields represent asset value for the new accounting standards (FASB ASC 842). The asset value for Operating or Finance is dependent on depreciation (amortization which is calculated differently for Operating and Finance classifications.) Hence, they are represented by 2 different asset value fields:
- The triSLAssetValueNU field is used to store the value for Operating leases. (The field for Operating is represented with “SL” or straight-line.)
- The triAssetValueNU field is used to store the value for Finance leases. (Small Correction: The term “Capital” is not applicable in ASC 842 guidelines.)
[Admin: To see other related posts, use the Straight Line tag or ASC tag.]