IBM Tririga 10.5.3 is in production and streamlines your FASB/IASB compliance.

Let’s review the six major enhancements for advanced Lease accounting.

1. Period end close capabilities
2. Enhanced segregation of duties between lease administrator and lease accountant
3. Streamlined modification processing
4. Disclosure requirements templates (quantitative metrics)
5. Journal Entry Configuration Framework
6. Simplified ERP Integration (Data Transfer Object)

Major Deliverables of IBM TRIRIGA 10.5.3

1. Period end close capabilities

TRIRIGA 10.5.3 delivers “Lease Accounting Period Close” which ensures that no additional journal entries can be posted for that closed period. This basically means that once all the journal entries have been processed for a particular period, this functionality prevents you from adding additional Journal entries to ensure your data and reporting are accurate.

Advantages:

• Ensures process consistency
• Enables analysis and reconciliation
• Improves data accuracy

2. Enhanced segregation of duties

With IBM TRIRIGA 10.5.3, the roles and responsibilities of Lease Accountant and Lease Administrator have been clearly delineated. While both the roles are now mandatory contacts for all leases, a lease administrator can only create, revise, and terminate leases but cannot edit financial data. It is the Lease accountant who has exclusive access rights to the accounting and financial data and gets to review, analyze and activate leases, review and approve changes made by the lease administrator, and process fiscal line items for journal entries.

Advantages:

• Clear definition of roles and responsibilities
• Improves control and streamlines process and workflow
• Improves data accuracy

3. Streamlined modification processing

A revised process for recording lease modifications has been introduced in this version which supports FASB/IFRS compliance and creates a single process flow for all modifications.

Modifications include “Data Revise” which can be used both by the lease administrator and accountant to modify non-accounting information.  The Lease Administrator can use the “Amendment” action to exercise an option.   The Lease Accountant can use the “Change in Assessment” to update leases if he is ‘reasonably certain’ of executing a Renewal, Termination or Purchase option in the future. “Change in Contractual Factors” option is used by the Lease Accountant to re-measure the lease.

You can also adopt the new Accounting Standard using the ‘Review Lease Assumptions’ option, either in bulk or for selected leases. As of the look-back period, TRIRIGA will calculate the NPV of Rent and revalue the Lease Liability and ROU Asset.

Advantages:

• Supports FASB/IFRS compliance
• Streamlines process and workflow
• Improves data accuracy

4.  Disclosure requirements templates (quantitative metrics)

IBM TRIRIGA 10.5.3 comes pre-loaded with a variety of OOTB report templates which support FASB/IASB compliance. Some of them include:

• Right-of use asset, finance and operating leases
• Lease liabilities, finance and operating leases
• Finance lease expense (amortization and interest)
• Operating lease expense
• Cash flow – finance lease (principal and interest), operating leases, – short term leases, variable payments
• Initial recording of lease at commencement
• Future Rent Obligations
• Weighted Average Lease Term/Discount Rate

Advantages:

• Supports FASB/IFRS compliance
• Enables analysis and reconciliation

5.  Journal Entry Configuration Framework

With capabilities to generate Journal Entries for ASC 840 and ASC 842 under US-GAAP, as well as for IAS 17 and IFRS 16, IBM TRIRIGA 10.5.3 practically transforms the Real Estate Manager module into a sub-ledger system for Real Estate and Asset Lease Accounting.

Advantages:

• Streamlines process and workflow
• Improves data accuracy
• Simplifies ERP integration

6. Simplified ERP Integration (Data Transfer Object)

TRIRIGA 10.5.3 simplifies the process of transferring the lease accounting data into your ERP system by creating a Data Transfer Object (DTO) file that loads into the ERP General Ledger. TRIRIGA allows you to configure up to 30 additional fields to transfer the data to your ERP General Ledger system.

Advantages:

• Streamlines process and workflow
• Improves data accuracy
• Simplifies ERP integration

With multiple user-driven features, IBM TRIRIGA 10.5.3 will help streamline your compliance with both the FASB (GAAP) and the IASB (IFRS 16) guidelines.  To learn more, register for ValuD’s IBM TRIRIGA FASB webcast series with our expert lease accounting team.

References: IBM TRIRIGA 10.5.3 Lease Accounting Implementation Guide

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