Implementation delay requested by the American Petroleum Institute not essential, but some clarification of the new accounting changes is needed.
Atlanta, GA (USA), August 25th, 2017 — The American Petroleum Institute (API) recently issued a letter to the Financial Accounting Standards Board (FASB) to request a delay in the implementation date of a new lease accounting standard. However, LeaseQuery LLC offers lease accounting software that complies with all of the new disclosure requirements under the FASB standard. LeaseQuery’s software will expedite the tasks required toward successful compliance under the new FASB standard.
In the letter, dated July 11, 2017, the API asked the FASB to grant companies two additional years to implement the changes associated with the Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). API stated, “Quite simply, some 18 months before the effective date of one of the most extensive accounting changes in the last two decades, the software and related support required for effective implementation does not yet exist.” Therefore, the API asked that public companies be given until 2021, instead of 2019, to comply with the new standard.
“Our goal is to assist the API and other public businesses in successful, timely compliance of the new lease accounting standard,” said Chris Ramsey, Director of Customer Solutions. “Our software is built specifically for lease accounting. The accuracy of our software has been verified and determined to comply with the new standard by independent auditors.”
The API also said in its letter that the ASU necessitates more complex and time-consuming analysis and further explanation is needed. “Our company agrees with the API’s position that some clarification is indeed necessary, especially as it relates to easements,” Ramsey said.
Incidentally, the FASB’s new lease accounting changes would supersede or phase out FASB Accounting Standards Codification, Leases (Topic 840). ASC 840 standard stipulates that companies only have to record lease obligations on their balance sheets when the arrangements involve financing transactions, such as rent-to-own contracts for buildings or vehicles.
LeaseQuery’s software offers a specialized solution to assist users with compliance of the new lease accounting standard. It provides an “easy button” for lease accounting. Built by accountants for accountants—the software enables businesses to successfully manage real estate and equipment and effortlessly transition to the new lease accounting standard. Thanks to LeaseQuery, companies can stop using unreliable excel spreadsheets and start using a purpose-built tool that can help them avoid overpaying rent.
LeaseQuery is one of only a few companies that offer this specialized type of lease accounting software. Unlike other providers that focus on lease management or lease administration, LeaseQuery specifically concentrates on the lessee and the management of lease accounting liabilities.
For more information about LeaseQuery’s specialized software, visit http://www.leasequery.com. Or contact Chris Ramsey at 800-888-7270 to schedule a free demo.
About LeaseQuery LLC:
Founded in 2011, LeaseQuery LLC was established to fill a void in the marketplace. The software was created by accountants for accountants because a suitable solution for lease accounting did not exist. The founders of LeaseQuery benefited from accounting expertise that gave them foresight into future compliance changes. Since its inception, LeaseQuery has grown into a flourishing SaaS company with the professional expertise to address the accounting needs of clients of all sizes. LeaseQuery LLC, which is based in Atlanta, Ga., provides its accounting software to organizations nationwide.
Press & Media Contact:
Chris Ramsey, Director of Customer Solutions
1050 Crowne Pointe Parkway Suite 500,
Atlanta, GA 30338 – USA