Lease Abstraction Services Specialized Hub
The evolving lease accounting standards, as set by regulatory bodies such as 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 complexities for lease administration and lease abstraction services. Complete Legal Outsourcing’s Lease Abstraction Specialized Hub is designed to assist organizations in navigating and addressing these challenges effectively.
Effective Approach to Lease Abstraction Services
Our Lease Abstraction Specialized Hub provides a quality-focused and cost-efficient approach to abstracting data from both real estate and non-real estate leases, as mandated by the new lease standards or for achieving operational excellence. The new lease abstraction services standards pose significant accounting challenges for organizations. The Lease Abstraction Specialized Hub can help address challenges such as:
Abstracting high volume and broad scope of leases within a limited time frame.
Discussing the impact of elections of practical expedients, including the portfolio approach package of reliefs, short-term lease exceptions, materiality considerations, and other available accounting elections or alternatives.
Continually maintaining the lease abstraction services portfolio, handling new leases, modifications, and advising on the implementation of data quality programs.
Offering lease abstraction services in various foreign languages while considering local market intricacies.
Complete Legal Outsourcing Lease Abstraction Specialized Hub Process
Complete Legal Outsourcing employs a well-established four-step process consisting of planning and design, data abstraction, quality review, and system integration. Each step includes corresponding substeps, ensuring the production of high-quality and integrity abstracted data to meet the requirements of the new standards.
Enabling Technology Support
Our lease abstraction services incorporates proven processes and technologies to expedite implementation, assist in lease type classification, and automate document review procedures. We leverage technology support such as OnPoint, an inbuilt abstraction Software to enhance extraction automation and increase process efficiency.
Complete Legal Outsourcing Difference
Our lease abstraction services leverage a centralized delivery model, scalable structure, global resources, continuous monitoring, technology enablement, data quality focus, and tailored options. This approach allows organizations to save time and keep employees focused on strategic activities while efficiently addressing the challenges posed by evolving lease accounting standards.
What are lease abstraction services?
The procedure of recapitulating the crucial information from a lease or a contract is known as lease abstraction.
An abstract contains important information like, but not limited to:
(a) Name and address of parties
(b) Lease term
(c) Renewal dates
(d) Rent Escalation
(e) Landlord and Tenant Rights
(f) Common Area Expenses
(g) Taxes
(h) Subletting Info
Lease abstraction assists landlords, tenants, attorneys, and investors, along with equity partners to swiftly retrieve the crucial information from a commercial lease document. Abstraction saves the burden of reviewing the entire lease document that may contain legal language thus making it difficult for a common man to understand the complexities. A lease abstract provides a brief, easy-to-understand summary of all important details from a lease document.
The major steps involved in a lease or document abstraction are:
(a) Request the lease documents from the client
(b) Review the lease documents
(c) Customize the available templates as per the information contained in the lease document
(d) Send the customized template to the client for approval
(e) Once approved, start the lease abstracting services process
(f) Perform quality checks on the abstracted information
(g) Send it back to the client