Question: Why is UGAAP a better lease accounting solution?
Answer: UGAAP solution is based on extensive accounting research and is preferred by CPAs and accounting professionals. Accounting compliance is at the core of UGAAP. Some UGAAP clients account for as much as half a billion U.S. dollars of lease assets monthly. Company can also use it for lease administration purpose.
User entities have technology options:
- Cloud (SaaS) software provides mobility, low internal IT cost, and more timely updates.
- On-Premises software provides low-cost long-term compliance as user entities control the software and data.
Question: How does the UGAAP software help us transition to the new lease standard?
Answer: UGAAP’s powerful and flexible lease reassessment/modification functionality plays a critical role in lease standard transition. Read more in this blog here.
Question: Are you able to use the historical foreign exchange rate to remeasure right-of-asset amortization expenses to functional currency?
Answer: Yes. This functionality is built into the UGAAP database. An entity should remeasure the amortization of the non-monetary ROU asset into the functional currency using the historical exchange rate (i.e, as of lease commencement). An entity should remeasure accretion of the monetary lease liability into the functional currency at the average exchange rate for the period.
Question: How is the UGAAP on-premises lease accounting database updated if there are any changes in lease accounting guidance again?
Answer: The update is quick and elegant. We will send you a new version of the database if / when an update, enhancement, or customization is needed. Typically only the front-end database (see the question below) needs an update. All your data in the back-end database remain intact.
Question: What if my lease teams don’t have a shared network drive?
Answer: Multiple team members often need to work on the same leases, but if your office space is not in a cloud environment (e.g., Office 365) or doesn’t have a shared network drive, UGAAP software enables you to export lease information into an Excel file. Other team members can import the Excel file into their copy of the software. You can select which lease(s) to export and send.
Question: Why do I need Journal Entries in Functional Currency?
Answer: Our software is based on thorough research of authoritative guidance from accounting authorities or leading accounting firms. We collect up-to-date pronouncements, research findings, and practical experiences from the extensive network of sources, then apply them to the software. This includes interaction with other complex accounting topics, such as foreign exchanges. In most cases, local currency journal entries suffice. However, for companies operating in foreign continents, their functional currency often differs from local currencies. For example, in Europe, they usually use Euro as functional currency and keep their general ledgers in Euro. However, they often sign lease agreements in local currencies. These companies need to calculate foreign exchange gain or loss related to the leases. UGAAP journal entries in functional currency include the properly calculated forex gains or losses every period. Of course, our software generates journal entries in local currencies as well.