How to Efficiently Reconcile New Balance Sheet Accounts for Leases


The first half of 2019 has come and gone, and with it, the initial implementation of ASC842 for many public companies.

Most organizations begin by focusing on accurately and completely collecting lease data, calculating the balance sheet impact related to the same, and updating their financial statements to contain the necessary disclosure details.

Now that these companies have a few month and quarter ends under their belt, attention has turned to efficiently reconciling new balance sheet accounts for leases, and wrapping these new processes related to leases into their Continuous Accounting practices.

A few customers have gone so far as to integrate CoStar, serving as lease accounting subledger, into their BlackLine Account Reconciliation solution. This usually involves determining the appropriate accounts in CoStar, as well as the necessary grouping on their accounting segment for aggregation. Data is then delivered to BlackLine via an automated process, or in some cases, available as a report output that matches the BlackLine upload template format.

Integrating the subledger lease data balances into the account recs process during the month-end close has allowed clients to identify inconsistencies between the subledger and the GL, and become more efficient at reconciling these errors.

Due diligence is currently being performed by CoStar’s product team to automate data into the BlackLine ecosystem. This will be accomplished by using the BlackLine API as opposed to legacy file transfer, and should eliminate the implementation burden on behalf of Costar, BlackLine, and their customers.

It will also open the door to further integration with other BlackLine solutions such as Matching or Journals. With the sweeping changes underway for lease accounting, BlackLine and CoStar go beyond standard business processes and implement solutions that streamline ongoing automation for accounting and reporting.

No matter where your organization is in the compliance process, CoStar offers organizational leaders practical, real-world insight on how to create a lease accounting compliance plan.

Attend their session at InTheBlack to learn how to take a more strategic approach to lease accounting compliance—including Day 2 reconciliations with BlackLine. Register here if you haven’t yet.