... Foreword ... 15

... Preface ... 17

... Introduction ... 19

... The Shift: Regulatory Changes at a Glance ... 19

... The Impact: Changes to Financial Processes ... 30

... The Solution: Leasing Systems from SAP ... 36

... Summary ... 39

1 ... Lease Accounting Basics ... 41

1.1 ... Building Blocks of a Lease ... 41

1.2 ... Lessee Accounting ... 45

1.3 ... Lessor Accounting ... 62

1.4 ... Summary ... 73

2 ... Evaluating Compliance Readiness ... 75

2.1 ... Leasing Requirements ... 75

2.2 ... Master Data ... 78

2.3 ... Business Processes ... 90

2.4 ... System Changes ... 96

2.5 ... Summary ... 108

3 ... Managing Your Leasing Project ... 109

3.1 ... Defining the Scope ... 109

3.2 ... Establishing Timelines and Deliverables ... 112

3.3 ... Choosing Your Team ... 130

3.4 ... Setting Your Budget ... 134

3.5 ... Kicking Off Your Project ... 142

3.6 ... Summary ... 145

4 ... Implementing SAP Lease Administration by Nakisa ... 147

4.1 ... Before You Begin ... 147

4.2 ... Settings Tab ... 157

4.3 ... Master Data Configuration ... 167

4.4 ... Data Management ... 203

4.5 ... Build Management ... 208

4.6 ... Schedule Jobs and Thresholds ... 211

4.7 ... Field Management ... 213

4.8 ... Caption Editor ... 214

4.9 ... Logs and RFC Traces ... 215

4.10 ... Summary ... 218

5 ... Configuring SAP Flexible Real Estate Management for Lease Valuations ... 219

5.1 ... Basic Settings for Balance Sheet Valuation ... 222

5.2 ... Balance Sheet Valuation of Contracts ... 226

5.3 ... Account Determination ... 240

5.4 ... Special Topics ... 262

5.5 ... Summary ... 266

6 ... Transition Accounting ... 267

6.1 ... Practical Expedients ... 268

6.2 ... Choosing a Transition Approach ... 274

6.3 ... Adopting the Modified Retrospective Approach ... 276

6.4 ... Summary ... 280

7 ... Managing Leases with SAP Lease Administration by Nakisa ... 281

7.1 ... Master Lease Agreement ... 282

7.2 ... Contracts and Lease Components ... 288

7.3 ... Activation Groups and Units ... 308

7.4 ... Lease Event Management ... 325

7.5 ... Summary ... 331

8 ... Managing Leases with SAP Flexible Real Estate Management ... 333

8.1 ... Lease Valuation Data ... 337

8.2 ... Valuation Rules and Calculations ... 346

8.3 ... Valuation Postings ... 357

8.4 ... Lease Modifications and Updates ... 365

8.5 ... Reporting and Disclosure Statements ... 366

8.6 ... Summary ... 372

9 ... Disclosures, Reporting, and Analytics ... 373

9.1 ... Standard Required Disclosures ... 373

9.2 ... Reporting and Analytics with SAP RE-FX ... 377

9.3 ... Reporting and Analytics with SAP Lease Administration by Nakisa ... 385

9.4 ... Summary ... 393

10 ... Key Industry Considerations ... 395

10.1 ... Healthcare ... 395

10.2 ... High-Tech ... 399

10.3 ... Air and Defense ... 401

10.4 ... Summary ... 404

... Conclusion ... 405

... Chapter 1 ... 405

... Chapter 2 ... 406

... Chapter 3 ... 407

... Chapter 4 and Chapter 5 ... 408

... Chapter 6 ... 408

... Chapter 7 ... 409

... Chapter 8 ... 409

... Chapter 9 ... 410

... Chapter 10 ... 411

... Additional Resources ... 411

... Appendices ... 413

A ... IFRS 16 and ASC 842 FAQs ... 413

B ... The Authors ... 423

... Index ... 427