Black Owl Systems

Lessor Accounting Software

Lessor Accounting Requirements

Standards - Black Owl supports Financial Accounting Standards Board (FASB) ASC 842, International Accounting Standards Board (IASB) IFRS 16, and Canadian Accounting Standards for Private Enterprises (ASPE) Section 3065

Financial Accounting Standards Board

FASB

Lease Types (ASC 842)

  • Sales-Type
  • Direct Financing
  • Operating
  • Implicate Rate Systems automatically calculates the implicate rate based on the term and conditions of the lessor agreement.
  • Sublease Easily create and track sublease agreements, including multiple levels of subleases.

International Accounting Standards Board

IASB

Lease Types (IFRS 16)

  • Finance
  • Operating
  • Implicate Rate Systems automatically calculates the implicate rate based on the term and conditions of the lessor agreement.
  • Sublease Easily create and track sublease agreements, including multiple levels of subleases.

Canadian Accounting Standards for Private Enterprises

ASPE

Lease Types (ASPE 3065)

  • Finance
  • Operating
  • Implicate Rate Systems automatically calculates the implicate rate based on the term and conditions of the lessor agreement.
  • Sublease Easily create and track sublease agreements, including multiple levels of subleases.

Master Lessor Accounting with Simplification

  • Comprehensive Data Management

    Manage all lease data effortlessly. Our software supports lease terms, payment schedules, renewal options, and variable lease payments with precision.

  • Lease Classification

    Our system guides clients in classifying lessor lease agreements based on the criteria set out in the accounting standard.

  • Automated Calculations

    Automate interest, depreciation, and present value calculations for future lease payments, reducing errors and saving valuable time. Regulatory Compliance Stay compliant with ease. Our system is regularly updated to meet ASC 842, IFRS 16 and ASPE 3065C standards, with compliant reporting at your fingertips.

  • Seamless ERP Integration

    Easily integrate with your existing financial systems for a unified workflow and minimized manual entry errors.

ASC 842 Retains the Same Basic Model as ASC 840

A lessor will classify leases as sales-type, direct financing, or operating lease.

Balance Sheet
Income Statement
Cash Flow Statement

Sales-type and direct financing leases

Recognize net investment in the lease

Derecognize the underlying asset

Selling profit (loss)

Interest income over the lease term

Cash received from leases classified as operating cash flows. 

Operating Leases

Continue to recognize the underlying asset

Lease income generally on a straight-line basis over the lease term

Cash received from leases classified as operating cash flows

Key Differences from ASC 840

  1. Certain items will no longer preclude sales-type lease classification.
  2. A narrower definition of initial direct costs.
  3. Lease and non-lease components.
  4. Sale-leaseback accounting may be significantly different for buyer-lessor.
  5. Executory costs.
  6. Expanded qualitative and quantitative disclosures.

 

Reporting and Analysis Made Simple

  • Advanced Reporting: Generate reports tailored to your internal and external needs, providing insights and fulfilling regulatory requirements.
  • Transparent Audit Trails: Each lease holds a detailed audit trail, ensuring full transparency and simplifying the audit process.
  • Enterprise Security: Protect sensitive financial data with our robust security features, ensuring data integrity at all times. 
  • User-Friendly Interface: Navigate with ease. Our intuitive interface allows efficient management and reporting on lease agreements. 

 

Lease Changes

  • Lease Modifications, Reassessments, Terminations, Extensions, Sublease Arrangements: Effortlessly make lease changes into a streamlined process, enhancing efficiency, reducing errors, and improving overall lease management.
  • Retroactive Adjustments: Manage lease changes easily for current and retroactive periods, maintaining strong audit trails.
  • Sale and Leaseback Transactions: Under ASC 842, sale and leaseback transactions may be treated differently, affecting how lessors recognize revenue and measure lease receivables.

 

Scale and Support for Your Business Growth

  • Scalability: Our software grows with your business, easily handling new leases and expanding operations.
  • Expert Support and Training: Maximize the software’s potential with our comprehensive support and training resources.
  • Forecasting and Scenario Analysis: Model different lease scenarios and analyze their financial implications for informed decision-making.
    Proactive Notifications: Never miss a critical date with automated reminders and
    reports for renewal deadlines and payment due dates.

USER-FRIENDLY

Black Owl Lease provides a simple and innovative data entry screen for new leases

Excellence in Lease Accounting

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iSP³ Solutions Providers

iSP³ is a reseller and implementation partner of Black Owl bringing over 20 years in the ERP industry

iSP³ Solutions Providers

iSP³ is a reseller and implementation partner of Black Owl bringing over 20 years in the ERP industry

Nextworld

Black Owl Systems is an ISV (Independent Software Vendor) for Nextworld ERP software company to provide their lease accounting solution to Nextworld clients.

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NuVerge

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Tesserae Technologies

Tesserae Technologies provides digital transformation and state-of-the-art solutions for the floor covering and building materials industry. Tesserae are proud industry Solution Developer partners with Nextworld®, providing best-in-class advanced solutions for enterprise-level building material companies while partnering with the best in the ERP ecosystem. Their teams employ decades of experience in building materials, finance, and technology to offer unique and creative solutions to achieve competitive advantages.