LeaseMARC™: A Lease Accounting and Reporting Solution

Managed Services

Deloitte is helping clients reengineer their lease accounting and reporting operating model through the LeaseMARC solution. Leveraging Deloitte’s distinct Managed Services operating platform and delivery model, LeaseMARC provides a broad lease accounting and reporting solution by bringing together experienced professionals, leading class processes, and our proprietary technology in a single offering.

This innovative lease accounting and reporting solution are designed to enable organizations to strengthen compliance, reduce risk, reduce organizational complexity, and decrease total cost of ownership while meeting the new lease accounting standard requirements by the January 2019 compliance deadline.

Our accounting and reporting solution includes a full month-end reporting package with journal entries, and cash flow and disclosure inputs, supported by requisite audit trails. With Deloitte managing the accounting and reporting, our clients can refocus their resources to other areas of their core business.

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Comply with confidence

LeaseMARC helps organizations manage compliance with the new lease accounting and reporting standards. Our skilled professionals bring deep industry experience to provide guidance in the following key areas:

• Accounting assessment and treatment
  
  • Understand current population and assess accounting treatment
    
  • Develop a road map for data abstraction considering existing system capabilities
    
  • Assess total cost of ownership of future operating model choices
    
  • Establish project leadership, milestones, governance, and resource requirements
    
• Initial abstraction and intake
  • Identify and extract required data elements from lease documents—manually, automatically, or a combination of both
    
  • Assist with data interpretation and data validation
    
  • Integrate data abstracted with ongoing accounting and reporting solution
    
• Ongoing services
  
  • Assist with managing on-going ASC 842 and IFRS 16 lease accounting requirements
    
  • Capable of helping you address non-standard lease transactions and unique requirements
    
  • Help manage current lease portfolio for different lease types and adapt to future compliance rules
• Reporting
  • Monthly and quarterly journal entry and footnote disclosures, which are audit ready
    
  • Provide and discuss monthly reporting package, exceptions and outliers in population
    
  • Web portal access to reports and forecasts
    
• Updates/modifications
  • Update information based on new transactions, updated terms, renewals, expirations, etc.
• Insights
  • Ongoing recommendations and insights into the organization’s transaction population

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Is your organization a good candidate for LeaseMARC?

Are you fully prepared and staffed appropriately to comply with the new lease accounting standards reporting and disclosure requirements? If not, here are a few questions to consider:

• Have you considered the impact of the new lease accounting standards to your financial reporting? Are you working with an advisor to assess the impact?
• Do you currently have manual-based accounting and reporting operating model processes?
• Do you have high overhead costs and accounting risk exposure?
• Have you thought about what operating model you will operate under to implement these new standards by the January 2019 deadline?
• Have you performed your lease assessment and do you understand your lease population?
• Are your lease agreements across multiple decentralized locations and in different business and operating units?
• Have you abstracted key data attributes from your leases yet?
• What technology platform are you using? Have you considered what your ongoing solution will be? Do you need to store lease data and perform calculations?
• What is your accounting and technology resource model now compared to how you envision it?
• What are you currently doing to abstract and assess lease data, manage governance models, and report according to lease standards?
• How do you currently manage the disparate data across systems? Is it done manually?
• How accurate is your data for reporting purposes? How frequently do you provide reporting?

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Why LeaseMARC?

There are many reasons why organizations should consider LeaseMARC for their lease accounting needs.

• Reduced cost of ownership versus managing in-house. LeaseMARC is designed to help you address challenges associated with acquiring, training, and retaining people with the right competency and experience. It also reduces the need to implement in-house technology and establish comprehensive processes.
• LeaseMARC isn’t just new technology. It is a cloud-based solution, with leading technology functionality, to help customers meet the new lease standard requirements. And this technology is powered by people and process. This extra support helps manage exceptions and reduce manual errors or supplemental activity that can’t be provided by technology alone.
• Better reporting outcomes. LeaseMARC provides accounting interpretations and insights, as well as supports outcomes with ongoing updates as regulations change.
• Speed to value. Implementation and upgrade cycles are shortened with LeaseMARC to more quickly meet requirements, while integrating with related internal processes and technology.
• Audit readiness. Reporting outcomes from LeaseMARC provide a transparent trail from accounting output back to transaction data, ready for management review and sign-off, plus auditor review.

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