Ventana Research Analyst Perspectives

Real Estate Isn’t Just a Fixed Cost

Posted by Robert Kugel on Oct 12, 2018 6:00:00 AM

Financial analysts typically classify real estate as a fixed cost. Strictly speaking, that’s correct, but looking at it this way leads many organizations to overlook opportunities to more carefully manage their real estate and other occupancy expenses. The changes in lease accounting that are going into effect have caused some organizations to reexamine their leasing policies and how they organize their lease accounting processes. They should take an even broader approach and consider ways to improve how they manage those leases.

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Topics: Office of Finance, Continuous Planning, ERP and Continuous Accounting, Financial Performance Management, Operations & Supply Chain, Lease Accounting, Accounting, IFRS16, ASC842

Warning: Software Now Mandatory for Lease Accounting

Posted by Robert Kugel on Apr 16, 2018 1:00:00 PM

Accountants love electronic spreadsheets – and for good reason. They’re a powerful and versatile personal productivity tool and just about everyone knows how to use them. Spreadsheets are the default software tool for accountants because they enable autonomy (you don’t need to ask IT for anything) and they’re free (so you don’t have to make a business case to authorize buying something). Some accountants humorously (but earnestly) invoke the line “you’ll have to pry this spreadsheet from my cold, dead hands” whenever somebody suggests eliminating them.

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Topics: ERP and Continuous Accounting, Office of Finance, Continuous Accounting, controller, FASB, IASB, CFO, Financial Performance Management, Spreadsheets, Enterprise Resource Planning, ERP, revenue recognition, Accounting, Lease Accounting, real estate, Lease Management, ASC842, IFRS16, leasing