kpmg leasing tool · leasing tool saas is a cloud-hosted application—allowing kpmg to provide...

KPMG Leasing Tool

March 2017

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Navigate Accounting Change

The Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) have announced significant changes to lease accounting. ASC 842 and IFRS 16, the leases standards, will not only impact your accounting and financial reporting but also your Information Technology systems and processes, business, and people.

How KPMG can help

The accounting solution, to the accounting problem, built by the accounting professionals. Based on our experience with accounting change and the broad impacts it can have on an organization, KPMG LLP (KPMG) is well-positioned to help you implement the new leases standards. In addition to providing you timely advice on the impacts of the new standards, we can also help identify and help you enhance your current leasing processes,

communicate with your stakeholders, and provide training and change management support to facilitate a smooth transition to the new standards. In addition, our cross-functional team will provide insights into internal controls, tax, processes, and business integration.

Our thorough solution also includes KPMG’s Web-based SaaS application that leverages the IBM TRIRIGA® platform to further address accounting change for the leases standards. The KPMG Leasing Tool is a rapidly deployable lease accounting application that can help you with your preparedness activities and eventual adoption of the standards.

Why KPMG and IBM

KPMG can provide both the experience and technical capabilities to effectively assist in the assessment of the impacts of the new standards to your organization and the technology to enable compliance. Our professionals are deeply knowledgeable and experienced in uncovering how accounting and financial reporting, policies, processes, and systems will need to change to comply with the new rules.

TRIRIGA is an integrated workplace management system solution. This software has been tried and tested for handling lease administration at some of the world’s largest companies.

By combining KPMG’s accounting experience with IBM’s technology platform, we are able to offer you a distinct solution, KPMG Leasing Tool that can help you comply with the leases standards. KPMG’s configuration of the TRIRIGA platform includes our accounting change methodology and feedback gathered from over 100 large companies preparing to adopt the leasing standards. The KPMG Leasing Tool SaaS is a cloud-hosted application—allowing KPMG to provide version upgrades and enhancements automatically. KPMG can assist you in operationalizing the standards through the use of this technology.

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IBM®, IBM TRIRIGA®, and IBM Business Partner Emblem are trademarks of International Business Machines Corporation, registered in many jurisdictions worldwide.

Data and Systems

Integrate with client’s current financial reportingsystems (e.g., AP system, ERP system: SAP, Oracle,

PeopleSoft, JD Edwards, etc.)

Existing database(s) and/or leasing system(s)

Existing realestate leases

System

Existinglease admin

System

Equipmentlease info(Excel)

Equipmentlease info

(Abstraction)

Inputs

ElectronicTransfer

Electronic Transfer

One-click Financial ReportingU.S. GAAP ASC 842 & IFRS 16:

— Detailed population

— Balance Sheet

— Income Statement

— Statement of Cash Flows

— Disclosure Report

— Journal Entries(a)

TheController’s

Office

KPMG Leasing Tool

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. NDPPS 552423

IBM®, IBM TRIRIGA®, and IBM Business Partner Emblem are trademarks of International Business Machines Corporation, registered in many jurisdictions worldwide.

Since our application is offered under a Software as a Service (SaaS) model, we can provide greater efficiency and flexibility in terms of data storage, processing, and security. Our KPMG team stands ready to facilitate data migration, system integration, lease abstraction, and other services to help you inventory and maintain your data in the KPMG Leasing Tool.

How it works:

This application has been designed to help companies implement the leasing standard accounting changes with five key elements in mind:

– Accounting diagnostic – The tool has an embedded diagnostic designed to assist with the initial assessment of identifying potential accounting gaps and impacts to accounting and financial reporting process, systems, controls, tax, and other areas of your organization. Key questions related to lease portfolio characteristics are included where differences in current U.S. Generally Accepted Accounting Principals and the new standard are likely to arise. The output is incorporated into an assessment report, including heat maps highlighting key impact areas.

– Lease inventory completeness and data capture – The individual lease input screens help companies capture the appropriate information for their lease calculations. In addition, there is an automated work flow approval process, including a special review for complex leases, which allows for an audit trail. There is also a certification by reporting unit that enables key users to validate the completeness of their lease population.

– Financial reporting and disclosures – The tool creates individual lease cash flow and amortization schedules. In addition, it creates a transitional balance sheet and journal entries for the comparative periods selected. Automated journal vouchers can be used to upload data to reporting unit financial reporting systems. Additionally, the tool generates individual business unit and consolidated disclosure reports.

– Lease activity business intelligence reporting – The tool uses prepopulated standard reports but can also be used to write customized reports to expand the scope of “business intelligence” reporting beyond that of the financial reporting calculations.

– Project management – The tool is configured to mirror a company’s specific internal organization and desired project structure. The administrator assigns each individual user to a specified reporting unit with a defined role in order to facilitate automated work flow and approvals. Dashboard reports are used to track key metrics, such as status, outstanding items, completed items, or metrics of interest to the user by reporting unit, region, country, or other individual metrics as defined by the user.

Financial Reporting Integration

KPMG Leasing Tool can integrate with most lease administration and/or ERP Systems. Our KPMG professionals bring data migration, abstraction and our implementation experience from helping many Fortune 500 companies adopt the ASC842 and IFRS16 lease accounting standards.

Lease accounting change insights and resources The KPMG knowledge base of articles and publications demonstrates our understanding of the complex challenges faced by companies around the world.

Access our lease accounting change thought leadership here: kpmg.com/us/leaseaccounting.

Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates.

Lease inventorycompleteness and

data capture

Financial reporting and disclosures

Project Management

Accounting Diagnostic

Lease activitybusiness intelligence

reporting

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. NDPPS 552423

Contact us:Please contact one of the following KPMG national or regional specialists regarding the new leases standard implementation for your organization.

National leads:

Dean BellPartner in Charge, U.S. Head of Accounting Advisory ServicesT: 212-872-5527E: dbell@kpmg.com

Don Coduto New Leases Standard, Implementation Lead DirectorT: 312-665-1481E: dcoduto@kpmg.com

Marybeth ShamrockAccounting Change Services and Leasing LeaderT: 216-875-8158E: mshamrock@kpmg.com

Rusty JamesDirector, Strategic AlliancesT: 212-872-6022E: rjjames@kpmg.com

IBM®, IBM TRIRIGA®, and IBM Business Partner Emblem are trademarks of International Business Machines Corporation, registered in many jurisdictions worldwide.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. NDPPS 552423

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

Regional leads:

MidAtlanticPatrick RyanPartnerT: 703-286-8257E: pryan@kpmg.com

Northeast Ingo ZielhoffManaging DirectorT: 212-872-4423E: ingozielhoff@kpmg.com

Amit SinghDirectorT: 212-954-6019E: amitsingh5@kpmg.com

Marc DumaineManaging DirectorT: 617-988-1257E: mdumaine@kpmg.com

MidwestDavid AugustynPartnerT: 312-316-6157E: daugustyn@kpmg.com

Pacific NorthwestTim LashuaPartnerT: 408-367-7182E: tlashua@kpmg.com

Samuel JefferyManaging DirectorT: 415-963-5183E: samueljeffery@kpmg.com

Pacific SouthwestStephen G. ThompsonPartnerT: 303-382-7970 E: sgthompson@kpmg.com

Alex NeilPartnerT: 949-885-5561E: alexneil@kpmg.com

SoutheastJack IngramPartnerT: 404-221-2398E: jtingram@kpmg.com

SouthwestMolly ChilakapatiPartnerT: 713-319-2507E: mchilakapati@kpmg.com

Michael NestaPartnerT: 214-840-2730E: mnesta@kpmg.com

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March 2017