Data Abstraction

Vaco assists large, private distribution company with their lease abstraction to launch their journey to compliance with the new ASC 842 lease accounting standard

  • Client

    Distribution Company

  • Services

    Lease Abstraction Services

  • Areas of Expertise

    ASC 842

  • Industry

    Private Sector

Our Challenge

Abstract Data from Original Contracts to Comply with ASC 842

In order to comply with ASC 842, the client needed to
abstract data from original lease contracts, as they did not
have any centralized lease management program in place.
Client needed to identify all asset owners across all
locations within their organization. All leases needed to be
gathered into a central depository and inventoried for
completeness.

Once leases were identified, all essential lease data
needed to be abstracted and entered into a propriety
workbook for their selected lease accounting software
tool. A major challenge for this project was the lack of
internal staff to perform the extensive work needed for
identifying and abstracting approximately 350 leases
within their diverse portfolio including equipment, copier,
fleet, machinery and a large number of real estate leases.

Our Solution

Created Detailed Inventory of All Client's Leases

Vaco assisted the client in identifying leases throughout their
organization and explain the complexity of portfolio. Vaco
created a detailed inventory of all leases including an
assessment of potential embedded leases and then
proceeded to abstract the 100 key data elements required by
their software tool from all leases. A standard element of
Vaco’s process is to work with the client regarding decisions
on reporting complex elements of the leases, including but not
limited to step payments, deferred rent, renewal options,
incentives, OPEX, end of term dates. Vaco created a file to
track all decisions made on each lease which can be used by
the external auditors.

Vaco provided guidance and training to the Client’s staff
on how to abstract future leases, compile key data elements
for ease of upload to lease accounting software tool and apply
the ASC 842 lease accounting standard to key decisions made
on future leases.

Download the full case study here.