RGP, a leading global consulting and professional services firm, and CoStar Real Estate Manager (“CoStar”), a division of CoStar Group, Inc. and a leading lease management software provider, today announced a strategic alliance under which RGP and CoStar will team to provide companies with an end-to-end solution to meet the looming deadlines for compliance with new lease accounting standards finalized in 2016 by the U.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB).
The new standards require companies to recognize practically all obligations for real estate, equipment and other leased assets on their balance sheets. U.S. Securities and Exchange Commission data estimates that Fortune 500 companies currently have more than $700 billion in off-balance sheet lease obligations that will be affected by the new standards, while the IASB projects new balance sheet additions worldwide may be in excess of $3 trillion.
This significant shift in accounting policy may have far-reaching impacts in many areas such as policies, procedures, systems, debt covenants and financial ratios. It will affect businesses in numerous industries heavily invested in lease arrangements, especially those in consumer products, restaurant, retail, financial services, manufacturing/distribution, utilities and oil & gas. By proactively preparing for the new standards, businesses can prevent financial reporting issues, increase internal controls and even receive a return on their investment.
“RGP is excited to partner with CoStar to provide our clients with a full ASC 842 or IFRS 16 solution,” said Shauna Watson, RGP’s Global Managing Director of Finance and Accounting. “From assessment to data gathering, to process design to implementation, our experienced consultants can help companies comply with these new accounting standards effectively and efficiently.”
CoStar’s proven lease accounting software provides the complete functionality needed to manage and report on real estate, equipment and other leased assets. It is delivered in a software-as-a-service (SaaS) format and offers out-of-the-box functionality that includes balance sheet impact, classification tests, amortization schedules, journal entry processing and GL system integration. To ensure compliance with Sarbanes Oxley’s requirement to demonstrate effective internal controls and procedures for financial reporting, CoStar’s platform completes an SSAE 16 audit annually.
“We’re pleased to align our proven lease accounting solutions with RGP,” said Andy Thomas, President of CoStar Real Estate Manager. “The combination of our Lease Manager product suite and the trusted advisors of RGP offer clients a proven combination for tackling compliance with the new lease accounting standards.”
For more information on the new lease accounting standards, go to www.rgp.com.
RGP is a multinational business consulting firm that helps leaders execute internal initiatives. Partnering with business leaders, we drive internal change across all parts of a global enterprise – accounting; finance; governance, risk and compliance management; corporate advisory, strategic communications and restructuring; information management; human capital; supply chain management; and legal and regulatory.
RGP was founded in 1996 within a Big Four accounting firm. Today, RGP is a subsidiary of a publicly traded company, Resources Connection, Inc. (NASDAQ: RECN), with over 3,300 professionals, annually serving over 1,800 clients around the world from 67 practice offices.
Headquartered in Irvine, California, RGP has served 87 of the Fortune 100 companies. Visit www.rgp.com/global-offices to find the office nearest you. (RECN-M)
About CoStar Group
CoStar Group, Inc. (NASDAQ: CSGP) is the leading provider of commercial real estate information, analytics and online marketplaces. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. LoopNet is the most heavily trafficked commercial real estate marketplace online with more than 10 million registered members. Apartments.com, ApartmentFinder.com and ApartmentHomeLiving.com form the premier online apartment resource for renters seeking great apartment homes and provide property managers and owners a proven platform for marketing their properties. Through an exclusive partnership with Move, a subsidiary of News Corporation, Apartments.com is the exclusive provider of apartment community listings across Move’s family of websites, which include realtor.com®, doorsteps.com and move.com. CoStar Group’s websites attracted an average of nearly 25 million unique monthly visitors in aggregate in the third quarter of 2016. Headquartered in Washington, DC, CoStar maintains offices throughout the U.S. and in Europe and Canada with a staff of approximately 2,800 worldwide, including the industry’s largest professional research organization. For more information, visit www.costargroup.com.