Adam Riches, CPA, walks through NetLease, a lease accounting tool built on NetSuite that handles IFRS 16 and ASC 842 compliance. It automates the full lease lifecycle from transition through modifications and terminations, manages complex features like rent holidays and renewal options, and generates required disclosures and dashboards.
Hello and welcome to this overview of Netlease, an end to end lease accounting solution built 100% on the NetSuite platform. Netlease was designed for lessees to comply with the new lease accounting standards IFRS 16 and ASC 842. It has been purpose built to produce the new disclosures that are now required and to support and automate the full lease accounting lifecycle including transition initiation, modification and early termination. Because Net Lease is built on the NetSuite platform, it enables our customers to further leverage their existing investment on the most powerful and modern ERP platform on the market, resulting in an easy to use cost effective solution that helps de risk and ensure compliance with the new lease accounting changes as you transition onto the new standard. Netlease supports both the modified and the full retrospective methods and provides full visibility and transparency into the right of use asset and lease liability calculations prior to your transition date. Netlease manages complex leases, so whether you have a simple fixed payment lease or one with rent holidays, lease incentives, prepayments, deposits, tenant improvement allowances, renewal options or removal costs, we have you covered. Net Lease also allows for the tracking of non GL leases such as those that are short term, low value or those tracked on behalf of a subsidiary that may not be running on NetSuite. For all leases we calculate the lease liability and right of use assets for period zero accounting. Netlease automates the creation of monthly transactions as part of the period end close process. Journal entries are linked within the amortization table allowing for easy and transparent review of both the transition entries as well as the month to month ongoing journal entries. Netlease also takes into account foreign currency leases accounting for realized and unrealized gains and losses on the payments and short term liabilities and accounts for the monetary and non monetary components of the lease. Lease modifications, renewals or changes in classification are easily managed on a single lease record so the historical information is retained in one location so so the changes can be monitored without any unnecessary navigation. Netlease was designed to produce the required disclosures under IFRS 16 and ASC 842 so that things like the weighted average discount rate, leases not yet commenced and the weighted average remaining term is at your fingertips in real time on your lease administration dashboard. In addition to capturing, automating and reporting everything required to comply with the new standards, netlease also captures non financial data such as holdover provisions, lease renewal options, guarantors on the lease and expected lease costs. Netlease was developed by NetGain, a group of ex big four accountants and CPAs who are lease accounting specialists. Leveraging years of experience working with Fortune 500 companies, we are focused on solving the complex with a cost effective compliance solution. With the effective date of the new standard approaching, public and private companies alike have a lot of work ahead of them in order to comply with the new standards. We are excited to help.
