As discussion and concern around implementing the new lease standard increased this year, there was much to be said about the readiness (or lack thereof) of lease accounting software solutions. In fact, this may have been a contributing factor in the FASB’s likely implementation delay for private companies.
The importance of accuracy when implementing the new lease standard is critical, so we absolutely understand the unease—particularly since we know all the risks associated with using spreadsheets. That’s why it was so important to us at LeaseCrunch® to go above and beyond to have a third party evaluate and test the inputs, calculations, and reporting outputs of our software, with our Agreed Upon Procedures report.
What were the results of the report?
The Agreed Upon Procedures engagement was requested by LeaseCrunch® because there was concern in the marketplace that lease accounting software could not handle the complex calculations in the new standard. LeaseCrunch® engaged Skoda, Minotti & Co., a Top 100 CPA firm, to perform an Agreed-Upon Procedures engagement in accordance with AICPA attestation standards to evaluate and test the inputs, calculations and reporting output of LeaseCrunch®’s software.
To complete the report, Skoda Minotti tested the wizards, data entry functionality, foreign currency translation, and calculations within LeaseCrunch®. In all cases, their independent calculations and determinations matched the output of the LeaseCrunch® software.
“LeaseCrunch® is committed to maintaining the veracity and substantiation of the outputs from its software. It is vital for methods and calculations from this software to be relied upon by its users,” said Jim Suttie, Principal at Skoda Minotti.
What major categories did the report test?
LeaseCrunch® was designed to help manage every aspect of the new lease standard, from categorizing leases to journal entries to footnote disclosures and much more. To complete the report, Skoda Minotti tested the following aspects of the LeaseCrunch® solution for ASC 842 and IFRS 16:
- Data Entry Integrity
- Testing - Lease Term Wizard
- Testing - Lease Classification Wizard
- Entering and Reporting on Leases
- Transition Lease
- Post-ASC 842/Post-IFRS 16 Leases
- Lease Revisions
- Testing - Foreign Currency Translations
See LeaseCrunch® in action
In addition to vastly simplifying the new lease standard for your clients (and making auditing much simpler for your firm), you can now give your clients peace of mind that using LeaseCrunch® ensures accuracy and compliance in their calculations.