Leased Assets (GAAP 842)

Question

Does anyone know when the updates will be available for leased assets? The support page was last updated in November of 2017, saying that Sage fixed Assets will offer additional lease accounting features.

Ann Donie · Answer

Due to the impact of the Tax Cuts and Jobs Act of 2017, adding new features for accounting for leased assets under ASC 842, Leases, has been postponed. The implementation of lease accounting features will be re-evaluated later in the year. 
 To assist companies affected by certain provisions in the TCJA, the plan is to add two new depreciation methods in the next release of Sage Fixed Assets, which is due out in October 2018. These new methods will allow companies to increase the life of existing assets in accordance with IRS rules for a 'change in use' of property.

Ann Donie · Answer

An update - A leased asset management module for Sage Fixed Assets is currently not in scope. 
 Based on our research, a complete leasing system to manage and account for leases under ASC 842 is a full sub-ledger system unto itself. Since the amortization of the right-of-use assets for operating-type leases is closely tied to the amortization of the related lease liability (so that the two jointly result in a straight-line lease expense to the income statement); we recommend exploring a dedicated lease portfolio management solution. Such a system would facilitate management of the lease contracts in addition to providing the accounting features needed for the asset and liability side of leased assets.

Lovisa · Answer

Hello Steven T, 
 We wanted to share this information with you regarding our solution to the Leased Assets (Lease Accounting): 
 Consolidate and streamline your asset management lifecycle with Sage Fixed Assets and LeaseQuery. Contact a Sage Fixed Assets expert today 1-800-368-2405.

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