Contract Intelligence for Leases | Technology | FTI Consulting

Contract Intelligence for Leases

Technology-enabled collection, analysis and reporting for enterprise leases

Technology

June 27, 2017

New accounting rules1 will come into effect in 2019 that require corporations to include all lease commitments, including operating leases, as part of their reported debt and assets. To achieve compliance, companies must have the ability to find, analyze and report on their entire enterprise lease universe – including leases ‘hidden’ in email attachments and other non-traditional locations.

The average Fortune 1000 company actively manages thousands of leases at any one time. These complex documents affect a corporation’s every department and geography and are increasingly digital, global and diverse. Yet many corporations lack an organized, centralized and automated method to collect and analyze their lease universe. Due to the critical importance of complying with new accounting standards requiring the inclusion of leases on corporate balance sheets, a growing number of organizations are engaging FTI Consulting's Contract Intelligence for Leases team to quickly understand and act upon their lease universe.

1 IFRS 16, Leases issued by the International Accounting Standards Board in January of 2016 and ASC Topic 842 issued by the Financial Accounting Standards Board in February 2016. Both standards require that all leases, including operating leases, be recorded on a company’s balance sheet as debt by 2019.

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