Lease Abstraction Center of Excellence (CoE)
New requirements for lease accounting standards updates
The new lease accounting standards set by the Financial Accounting Standards Board (FASB | ASC 842), International Accounting Standards Board (IASB | IFRS 16), Governmental Accounting Standards Board (GASB | GASB 87), and Federal Accounting Standards Advisory Board (FASAB | SFFAS 54) have introduced new requirements—and increased complexity—for lease administration and data abstraction. Learn how the Deloitte Lease Abstraction Center of Excellence (CoE) may help your organization address those complexities.
Enabling technology support
Our lease abstraction efforts utilize demonstrated processes and technologies to accelerate the implementation effort, assist in classifying lease types, and automate document review procedures. Where appropriate, we will integrate the supporting technology described below to enhance extraction automation and increase process efficiency:
- Deloitte Document Review Platform (DDRP) is an automated document review platform using cognitive technologies to read and automatically identify relevant information within unstructured lease documents.
- Lease Review Platform powered by Relativity is a workflow management and document review platform with extensive reporting and analytics capabilities, including status, accuracy, and key performance indicator (KPI) tracking across abstraction and review activities.
The Deloitte difference
Our abstraction processes leverage the characteristics highlighted below to help your organization save time while keeping your employees focused on more strategic activities:
- Centralized delivery model—Well-defined processes to enable a consistent and high-quality work product
- Scalable structure—Capacity to efficiently scale to accommodate the abstraction of large volumes of a wide range of portfolio sizes, including those with foreign-language leases
- Global resources—Access to foreign-language abstractors that can work directly in the native language and understand local compliance and contracting environments
- Continuous monitoring—Established key performance indicator (KPI) metrics to help monitor abstraction performance
- Technology enabled—Focused use of innovative enablers and electronic discovery capabilities to augment workflow management and expedite data collection and review
- Data quality focused—Automated data quality procedures applied throughout the data abstraction life cycle
- Tailored options—Flexible abstraction models that can be tailored to meet client data requirements, timing needs, and fee requirements. Additional processes to quickly assess and/or assist with remediating existing abstracted data
Learn more about the Lease Abstraction CoE
| Tim Kolber Managing Director Deloitte’s Accounting & Reporting Advisory Deloitte & Touche LLP +1 203 563 2693 |
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| Sean Torr Managing Director Deloitte Risk and Financial Advisory Deloitte & Touche LLP +1 615 259 1888 |
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| John Solomon Managing Director Deloitte Risk & Financial Advisory Deloitte Transactions and Business Analytics LLP +1 202 378 5172 |
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| Chris Stewart Partner Deloitte Risk and Financial Advisory Deloitte & Touche LLP +1 571 814 6826 |
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| Jennifer Ahn Partner Deloitte Risk and Financial Advisory Deloitte & Touche LLP +1 571 447 3725 |
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Additionally, you may contact us at: Deloitte Lease Abstraction CoE.
An effective approach to lease abstraction
Our Lease Abstraction CoE offers a quality-focused yet cost-efficient approach to performing abstraction of data from real estate and non–real estate leases required under the new lease standards and/or for operational excellence.
The new lease standards will likely present significant accounting challenges for organizations. Here are examples of some challenges that you may encounter—and how the Lease Abstraction CoE can help you address the challenge:
- Abstracting high volumes and broad scope of leases within a relatively short time period
- Holding discussions on the impact resulting from elections of practical expedients, including the portfolio approach package of reliefs, short-term lease exceptions, materiality considerations, and other available accounting elections or alternatives
- Performing continual maintenance of the lease portfolio, addressing both new leases and modifications, as well as advising on the implementation of data quality programs
- Addressing leases in multiple foreign languages with local market nuances
The Deloitte Lease Abstraction CoE process
Deloitte has a well-established four-step process for lease abstraction services. Each step has corresponding substeps. These tasks, in combination, are designed to result in abstracted data of the high quality and integrity to meet the requirements of the new standards.
Lease abstraction four-step process
*Including entity management review and approval