CyberLease’s LASER Service is based upon four CORE Components, representing our unique understanding and ability to deal with the implementation and reporting of the newly proposed lease accounting standards.

The implementation of the new lease accounting standards will present many challenges, particularly for firms with multiple real estate leases. The implementation of the new standards will have three distinct facets, as follows:

 

Each of these facets present unique challenges, and also have some common challenges, as illustrated in the graphic below:

 

The unique challenges related to each of the three facets of implementing the new standards represent issues CyberLease has successful handled for its clients over the past twenty years. For example, we review thousands of leases annually to determine whether audits of those leases are warranted, initiate audit programs of large lease portfolios for new clients, coordinate the gathering of lease and financial records and identify unique or problematic lease structures. Thus we already posses the systems, processes and know-how to effectively deal with the unique and common challenges of the three facets of the new lease accounting requirements. In other words, while these are all challenges for firms with multiple leases, thanks to our 20 years of experience, expert knowledge of lease terms and structures, local, national and international real estate market knowledge, etc., they are not challenges for CyberLease.

Firms with multiple leases – whether that means six or six hundred – need to be focused on obtaining accurate, consistent and expedient reporting of the financial statement impacts of the new lease accounting standards across their enterprise. Our experience and existing clients also tell us that maintaining the real estate perspective of lease commitments is critical to ensuring the measurement / results reflect the underlying real estate transactions. Finally, the ability to leverage the information for other value added services or opportunities is an obvious goal for the real estate and finance groups of our clients.

 

With our track record of identifying and recovering errors in the implementation of lease terms, mixed with our accounting and client-service focus, CyberLease is unique within the commercial real estate industry to be able to meet all of these objectives. Additionally, by utilizing CyberLease’s LASER Service, not only will tenants obtain accurate reporting of their lease-related assets and liabilities, but the underlying data will identify opportunities for other savings for tenants. For example, the on-going updating of the financial statement impact of a firm’s leases, performed on a lease-by-lease basis, can be used as an opportunity to perform a Preliminary Review of each lease to identify opportunities for savings.

When considering the purpose of lease accounting standards and ultimately the need to comply with those standards when finalized next year, it is critically important to remember the mantra of “garbage in, garbage out.” If the data from the leases is not extracted by experts in the fields of real estate leasing, accounting, auditing and lease construction, the result will be less than perfect. Adding to that the reasonable requirement that the firm providing the lease accounting service must have a successful track record and reputation to go along with it, leads again to a simple conclusion: CyberLease is the firm that meets those requirements, and has done so for years.

 

 

Simply stated, the end result of any lease accounting and reporting service must be precise, accurate, efficient and reliable. Our systems are designed to accommodate the most complex of real estate leases and our decades of experience in auditing, understanding and accounting for commercial real estate leases means CyberLease has the resources and expertise necessary for your lease accounting transition and financial reporting needs.