The way organizations have always processed their lease accounting standards is about to change. Organizations worldwide will need to start complying with The Financial Accounting Standards Board (“FASB”) and the International Accounting Standards Board’s (“IASB”) new global accounting standards. To ensure they have the information ready and organized to meet and comply with these standards, organizations need to start preparing now. At the moment, operating leases are reported off balance sheet and disclosed in the footnotes of the financial statements. However, organizations will be required to capitalize operating leases and disclose them in their balance sheets as assets and liabilities.

1. Solution Brief
Objectives
Solution
Benefits
Quick Facts
Lease Contract Administration by Nakisa
August 2013 / V1
Streamline your compliance
initiatives and prepare for the
upcoming changes to the leasing
accounting standards

2. Solution Brief
Objectives
Solution
Benefits
Quick Facts
Lease Contract Administration by Nakisa
“Companies need to think
about new processes, new
systems, and new controls.
The spreadsheets that many
companies have historically
used won’t be sufficient
in this new world.1”
Paul Sheward, PwC Midwest
Capital Markets and
Accounting Advisory Leader
The way organizations have always managed their
leases is about to change.
Soon, organizations worldwide
will need to start complying with
the Financial Accounting Standards
Board (FASB) and the International
Accounting Standards Board’s (IASB)
new accounting standards. To ensure
they have the information ready and
organized to meet and comply with
these standards, organizations need
to start preparing now.
At the moment, operating leases
are reported off balance sheet and
disclosed in the notes of the financial
statements. However, in the coming
years, organizations will be required to
capitalize many of these operating leases
and record them in their balance sheets
as assets and obligations.
1
Impacting your bottom line results, New leasing accounting
standards, PricewaterhouseCooper LLP, 2013.
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3. Solution Brief
Objectives
Solution
Benefits
Quick Facts
Lease Contract Administration by Nakisa
Currently, many organizations don’t have systems in place
to capture additional lease contract information.
With data dispersed in multiple
non-integrated sources, possible
misalignment on its use for business
decisions, uncertainty about its quality,
integrity and relevance, along with
ineffective and costly isolated efforts
for managing lease contracts, many
organizations are not prepared for the
transition to the new standards.
Organizations must take into
consideration the amount of time
needed to collect and integrate data
into their ERP systems. Therefore, they
need to start looking at their business
processes now in addition to developing
©2013 Nakisa. All rights reserved.
a plan to collect and organize the
required data. They need to start
identifying and implementing
systems that can process data
quickly and efficiently.
Ultimately, to prepare for the new
standards, organizations need better,
tighter integration. They need a
framework that provides an efficient
mechanism to collect the data needed
to meet the new accounting standards.
Organizations need a fully integrated
leasing contract management solution:
Lease Contract Administration
by Nakisa.
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4. Solution Brief
Objectives
Solution
Benefits
Quick Facts
Lease Contract Administration by Nakisa
A single point of entry to collect and validate the contractual attributes
of leased assets, Lease Contract Administration by Nakisa (LCAN)
provides visibility into your lease exposure to optimize assets portfolio
management and supports accounting processes for more efficient cost
controlling and regulatory compliance.
Creates and builds a unified database
of contractual data for all your lease
operations.
LCAN creates a unified leasing
contractual data repository that can
be accessed to leverage accurate and
relevant data for the optimization
of not only the leasing accounting
processes particular to your business,
but also transactional processes such as
equipment and real estate management,
supplier management, business
©2013 Nakisa. All rights reserved.
planning, and more. Streamline, trace,
and integrate all the data collected on
new, past and future leases.
A single source of truth, LCAN enables
you to make accurate decisions and
visualize your lease exposure based
on reliable data. With its mass data
importing capabilities, you can import
and integrate data from multiple
contract sources.
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5. Solution Brief
Objectives
Solution
Benefits
Quick Facts
Lease Contract Administration by Nakisa
Provides extensible data collection forms
that can accommodate business-specific
attributes as well as potential new
information required by the changes in
leasing accounting standards.
Prepare for new and future requirements
with the option to collect additional
attributes as regulations change. The
collection forms are flexible thanks to
an extensible data model which stores
attributes relevant to your business
processes. In addition, data entry is
simplified and standardized for any type
of lease operation, whether you are the
lessor or the lessee.
©2013 Nakisa. All rights reserved.
Enables the efficient interaction of
multiple users with different
professional profiles throughout the
collection process to ensure data
accuracy and integrity.
With LCAN, multiple key stakeholders
can collaborate by sending messages,
receiving alerts, validating data
accuracy and collecting changes
during the life cycle of the lease as
they occur. Consequently, it is easier
to obtain validation and achieve data
accuracy since information can be easily
reviewed and shared amongst legal
advisers, accountants, government
bodies, consultants and other relevant
stakeholders.
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6. Solution Brief
Objectives
Solution
Benefits
Quick Facts
Lease Contract Administration by Nakisa
Provides complete visibility into the
changes and decisions made throughout
the data collection process, ensuring
a clear trail for compliance reporting
that can be traced right back to the
contract source.
Never lose track of changes and
decisions made throughout the data
collection process. LCAN allows you to
track, from start to finish, any changes
made as well as who made the changes
throughout the process.
©2013 Nakisa. All rights reserved.
Facilitates interaction with a modern,
user-friendly interface that requires
minimum training.
LCAN enables more efficient, productive
and visible management of lease
contract administration in a user-friendly,
visual format. The software’s modern, rich
and engaging user-interface is intuitive,
requiring minimal training for nonexperienced users.
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7. Solution Brief
Objectives
Solution
Benefits
Quick Facts
Lease Contract Administration by Nakisa
✓✓ Prepare and plan for compliance
with leasing accounting standards and
financial transparency regulation
Businesses need an efficient,
centralized decision-making process
for collecting lease operations
data, leveraging the right
technology solution.
✓✓ Save on time and costs by
centralizing all your lease data in
one single repository
With the mass importing and field
mapping capabilities, LCAN enables
you to quickly import and integrate
data from thousands of contracts
from various sources.
✓✓ Quickly and easily visualize
your lease exposure while
ensuring all leases meet lease
accounting standards
Visualize your global lease exposure
at a glance on an intuitive dashboard
that breaks down the composition
of your assets, including contract
portfolio key dates, the value of
leased assets and responsible
organizational units.
✓✓ Improve and track your end-of-term
and renewal lease processes along
with any additional business-specific
key dates
Be strategic in the administration
of your lease operations by gaining
insight into the life cycle of
contracts, tracking key dates
(renewals, expirations, etc.) and
analyzing the financial implications
for your business.
©2013 Nakisa. All rights reserved.
✓✓ Speed-up the approval processes
by connecting and collaborating
with key stakeholders
Communicate new leases and lease
renewals easily with key stakeholders
to ensure all legal, financial and
business implications are assessed,
validated and approved. Simplify the
validation process and make it more
effective with accurate, complete data.
✓✓ Gain agility by analyzing the
business impact of contract
classification leveraging multiple
scenario simulations
LCAN is more than just a data capture
tool, it’s a business solution that
enables users to visualize various
scenarios that will support strategic
decision-making.
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8. Solution Brief
Objectives
Summary
A single point of entry to collect and validate
the contractual attributes of leased assets, LCAN
provides visibility into your lease exposure to
optimize global assets portfolio management and
support accounting processes for more efficient
cost controlling and regulatory compliance.
Objectives
• Be prepared for the new accounting standards
and ensure you have the right tools to achieve
reporting compliance
• Unify all leasing data in a secure repository
• Obtain all required legal, financial, and business
validations quickly and easily
• Visualize lease exposure for better strategic
planning
Solution
• Creates and builds a unified database of
contractual data for all your lease operations
• Provides extensible data collection forms that
can accommodate business-specific attributes
and potential new information required by
changes in leasing accounting standards
• Enables the efficient interaction of multiple
users throughout the data collection process to
ensure data accuracy and integrity
• Provides complete visibility into the changes
©2013 Nakisa. All rights reserved.
Solution
Benefits
Quick Facts
and decisions made during the process of
data collection, ensuring traceability for
compliance reporting
• Facilitates interaction with a modern,
user-friendly interface that requires
minimum training
Benefits
• Prepare and plan for compliance with
leasing accounting standards and financial
transparency regulations
• Quickly and easily visualize your lease exposure
• Save on time and costs by centralizing all your
lease data in one, single repository
• Improve and track your lease processes and any
business-specific key dates
• Ensure the validity of collected contractual data
• Speed-up approval processes by connecting
and collaborating with key stakeholders
• Gain agility by analyzing the business impact
of contract classification
Learn more
Contact your Nakisa representative, visit
www.nakisa.com or email nakisa@nakisa.com.
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9. About us
Nakisa helps customers better manage, track and
validate their data to effectively plan and monitor
projects, increase their competitive position, and
grow their margins.
Nakisa has developed a new solution that enables
customers to prepare for changes to leasing accounting
standards, defined by the Financial Account Standards
Board (FASB) and the International Accounting
Standards Board (IASB). Lease Contract Administration
by Nakisa (LCAN) provides visibility into lease exposure
to optimize global assets portfolio management and
support accounting processes for more efficient cost
controlling and regulatory compliance.
Nakisa is a SAP Tier 1 partner and collaborates to
co-develop integrated visualization solutions. Over
3.4 million users in 600 enterprises across 24 industries
worldwide use Nakisa solutions to extend the value
of their SAP investment.
©2013 Nakisa. All rights reserved.
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