Lease Contract Administration by Nakisa Solution Brief

Streamline your compliance initiatives and prepare for the upcoming changes to the leasing accounting standards

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Quick FactsBenefitsSolutionObjectives

Lease Contract Administration by Nakisa

Solution Brief

Soon, organizations worldwide will need to start complying with the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board’s (IASB) new accounting standards. To ensure they have the information ready and organized to meet and comply with these standards, organizations need to start preparing now.

At the moment, operating leases are reported off balance sheet and disclosed in the notes of the financial statements. However, in the coming years, organizations will be required to capitalize many of these operating leases and record them in their balance sheets as assets and obligations.

The way organizations have always managed their leases is about to change.

“Companies need to think about new processes, new systems, and new controls. The spreadsheets that many companies have historically used won’t be sufficient in this new world.1”

Paul Sheward, PwC Midwest Capital Markets and Accounting Advisory Leader

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Quick FactsBenefitsSolutionObjectivesSolution Brief

1Impacting your bottom line results, New leasing accounting

standards, PricewaterhouseCooper LLP, 2013.

With data dispersed in multiple non-integrated sources, possible misalignment on its use for business decisions, uncertainty about its quality, integrity and relevance, along with ineffective and costly isolated efforts for managing lease contracts, many organizations are not prepared for the transition to the new standards.

Organizations must take into consideration the amount of time needed to collect and integrate data into their ERP systems. Therefore, they need to start looking at their business processes now in addition to developing

a plan to collect and organize the required data. They need to start identifying and implementing systems that can process data quickly and efficiently.

Ultimately, to prepare for the new standards, organizations need better, tighter integration. They need a framework that provides an efficient mechanism to collect the data needed to meet the new accounting standards. Organizations need a fully integrated leasing contract management solution: Lease Contract Administration by Nakisa.



Currently, many organizations don’t have systems in place to capture additional lease contract information.


Creates and builds a unified database of contractual data for all your lease operations.

LCAN creates a unified leasing contractual data repository that can be accessed to leverage accurate and relevant data for the optimization of not only the leasing accounting processes particular to your business, but also transactional processes such as equipment and real estate management, supplier management, business

planning, and more. Streamline, trace, and integrate all the data collected on new, past and future leases.

A single source of truth, LCAN enables you to make accurate decisions and visualize your lease exposure based on reliable data. With its mass data importing capabilities, you can import and integrate data from multiple contract sources.

A single point of entry to collect and validate the contractual attributes of leased assets, Lease Contract Administration by Nakisa (LCAN) provides visibility into your lease exposure to optimize assets portfolio management and supports accounting processes for more efficient cost controlling and regulatory compliance.




Provides extensible data collection forms that can accommodate business-specific attributes as well as potential new information required by the changes in leasing accounting standards.

Prepare for new and future requirements with the option to collect additional attributes as regulations change. The collection forms are flexible thanks to an extensible data model which stores attributes relevant to your business processes. In addition, data entry is simplified and standardized for any type of lease operation, whether you are the lessor or the lessee.

Enables the efficient interaction of multiple users with different professional profiles throughout the collection process to ensure data accuracy and integrity.

With LCAN, multiple key stakeholders can collaborate by sending messages, receiving alerts, validating data accuracy and collecting changes during the life cycle of the lease as they occur. Consequently, it is easier to obtain validation and achieve data accuracy since information can be easily reviewed and shared amongst legal advisers, accountants, government bodies, consultants and other relevant stakeholders.




©2013 Nakisa. All rights reserved.

Provides complete visibility into the changes and decisions made throughout the data collection process, ensuring a clear trail for compliance reporting that can be traced right back to the contract source.

Never lose track of changes and decisions made throughout the data collection process. LCAN allows you to track, from start to finish, any changes made as well as who made the changes throughout the process.

Facilitates interaction with a modern, user-friendly interface that requires minimum training.

LCAN enables more efficient, productive and visible management of lease contract administration in a user-friendly, visual format. The software’s modern, rich and engaging user-interface is intuitive, requiring minimal training for non-experienced users.

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✓ Prepare and plan for compliance with leasing accounting standards and financial transparency regulationBusinesses need an efficient, centralized decision-making process for collecting lease operations data, leveraging the right technology solution.

✓ Quickly and easily visualize your lease exposure while ensuring all leases meet lease accounting standardsVisualize your global lease exposure at a glance on an intuitive dashboard that breaks down the composition of your assets, including contract portfolio key dates, the value of leased assets and responsible organizational units.

✓ Save on time and costs by centralizing all your lease data in one single repositoryWith the mass importing and field mapping capabilities, LCAN enables you to quickly import and integrate data from thousands of contracts from various sources.

✓ Improve and track your end-of-term and renewal lease processes along with any additional business-specific key dates Be strategic in the administration of your lease operations by gaining insight into the life cycle of contracts, tracking key dates (renewals, expirations, etc.) and analyzing the financial implications for your business.

✓ Speed-up the approval processes by connecting and collaborating with key stakeholders Communicate new leases and lease renewals easily with key stakeholders to ensure all legal, financial and business implications are assessed, validated and approved. Simplify the validation process and make it more effective with accurate, complete data.

✓ Gain agility by analyzing the business impact of contract classification leveraging multiple scenario simulationsLCAN is more than just a data capture tool, it’s a business solution that enables users to visualize various scenarios that will support strategic decision-making.


©2013 Nakisa. All rights reserved.

SummaryA single point of entry to collect and validate the contractual attributes of leased assets, LCAN provides visibility into your lease exposure to optimize global assets portfolio management and support accounting processes for more efficient cost controlling and regulatory compliance.

Objectives• Be prepared for the new accounting standards

and ensure you have the right tools to achieve reporting compliance

• Unify all leasing data in a secure repository• Obtain all required legal, financial, and business

validations quickly and easily • Visualize lease exposure for better strategic

planning

Solution• Creates and builds a unified database of

contractual data for all your lease operations• Provides extensible data collection forms that

can accommodate business-specific attributes and potential new information required by changes in leasing accounting standards

• Enables the efficient interaction of multiple users throughout the data collection process to ensure data accuracy and integrity

• Provides complete visibility into the changes

and decisions made during the process of data collection, ensuring traceability for compliance reporting

• Facilitates interaction with a modern, user-friendly interface that requires minimum training

Benefits• Prepare and plan for compliance with

leasing accounting standards and financial transparency regulations

• Quickly and easily visualize your lease exposure • Save on time and costs by centralizing all your

lease data in one, single repository • Improve and track your lease processes and any

business-specific key dates • Ensure the validity of collected contractual data • Speed-up approval processes by connecting

and collaborating with key stakeholders • Gain agility by analyzing the business impact

of contract classification

Learn moreContact your Nakisa representative, visit www.nakisa.com or email [email protected].

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About us

Nakisa helps customers better manage, track and validate their data to effectively plan and monitor projects, increase their competitive position, and grow their margins.

Nakisa has developed a new solution that enables customers to prepare for changes to leasing accounting standards, defined by the Financial Account Standards Board (FASB) and the International Accounting Standards Board (IASB). Lease Contract Administration by Nakisa (LCAN) provides visibility into lease exposure to optimize global assets portfolio management and support accounting processes for more efficient cost controlling and regulatory compliance.

Nakisa is a SAP Tier 1 partner and collaborates to co-develop integrated visualization solutions. Over 3.4 million users in 600 enterprises across 24 industries worldwide use Nakisa solutions to extend the value of their SAP investment.

Technology

Lease Contract Administration by Nakisa Solution Brief