New Financial Reporting Standards Impact Asset Software Tracking Procedures

New Financial Reporting Standards Impact Asset Software Tracking Procedures

Asset software tracking has been impacted by a change in how leases are reported in public companies’ financial statements.

The Financial Accounting Standards Board (FASB) issued in late February 2016 an Accounting Standards Update (ASU) in an effort to improve the integrity of financial reporting around lease transactions. Public companies are required to adopt this new standard for fiscal years beginning after Dec. 15, 2018, making the standard effective Jan. 1, 2019. Non-public companies have an additional year (Jan. 1, 2020) to adopt these new standards. However, any company who chooses to do so may implement the new standard for any reporting period after Feb. 25, 2016. The earlier you start planning, the better. And your asset software tracking platform can help you meet these new standards.

These updates affect any organization who rents real estate or manufacturing equipment. The new regulation effectively “ends what the U.S. Securities and Exchange Commission and other stakeholders have identified as one of the largest forms of off-balance sheet accounting, while requiring more disclosures related to leasing transactions,” said FASB Chair Russell Golden said.

In a nutshell, these updates require greater disclosure. Prior to this regulation, the majority of leases weren’t reported on balance sheets. Now, companies must report assets and liabilities for leases with terms of more than 12 months. Needless to say, these items have a direct bottom-line impact on a company’s bottom-line value. Getting the ball rolling now can help companies stay organized and meet the standard without frustration or disruption to the business.

Asset Panda’s asset software tracking platform can help companies track their leased equipment accurately and cost-effectively. It’s powered by free mobile iOS and Android apps that sync with the cloud, so your critical data is served up in real time 24 hours a day. There’s no need for additional hardware; in fact, Asset Panda even includes a mobile barcode scanner, so you won’t have to carry a separate handheld barcode scanner. Enter any asset, then add details like supporting documents, videos, voice notes and photos, if you wish. From the palm of your hand, track an item’s check-in/check-out status, the item’s condition, the identity of the person who has it, its complete maintenance history, insurance policy information, lease/purchase information, depreciation or inflation figures, and much more. Schedule a work order, create reports, and/or even use Asset Panda as an enterprise service desk.

Our philosophy is that clients should be able to track their assets any way they want. After all, no two clients are the same, and so our approach to asset tracking is completely customized according to your needs. You decide how your data is organized and displayed. From the custom dashboard to the fields and columns, reports, notifications, alerts, calendar feature and security settings, it’s all up to you. You’re also entitled to an unlimited number of users at no additional charge, so you can keep all of your stakeholders in the communication loop and increase accuracy and accountability throughout your organization. When you’re talking about compliance with regulations like those created by FASB, transparency and accuracy simply can’t be accomplished unless all of your stakeholders involved in the lifecycle of your assets are included in the conversation.

Best of all, Asset Panda is incredibly intuitive and easy to use. You won’t need any special training to master it, although our world-class customer support is always available. Try Asset Panda free for 14 days, and find out how the world’s most powerful asset software tracking solution can eliminate waste, guesswork and frustration, and deliver bottom-line results for your organization. To get started, visit assetpanda.com

 

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