Nakisa Lease Administration streamlines lease accounting for organizations
in the retail industry.
Lease contracts touch almost every aspect of a retail business. Retailers use these arrangements to make cost-effective investments in their stores, point-of-sale systems, distribution centers, and transportation equipment. The new lease accounting standards – IFRS 16 and ASC 842 – have brought new challenges to the accounting profession in the retail industry.
For many companies, adopting an on-balance sheet lease accounting model is a significant challenge by itself because of the requirement to capture and record substantially all leases. For retailers, however, there are activities common that create industry-specific complexities for the ongoing application of the new lease rules.