Accruent, the world’s leading provider of intelligent solutions for the built environment, has announced that U.S. retailer rue21 has chosen Lucernex Lease Administration and Accounting to manage compliance with the Financial Accounting Standards Board (FASB) new lease accounting standard. FASB Standard ASC 842, passed in 2016, requires corporations and other entities to classify all leases and report operating leases and finance leases lasting more than twelve months on their balance sheets. U.S. private companies must comply with FASB 842 in their first fiscal year beginning after December 15, 2019, unless a recently approved delay is enacted.
According to a 2019 Deloitte survey, 70% of private companies reported that they did not expect to fully adopt the new lease accounting standards by the original deadline. Due to the significance and complexity of the changes, FASB has approved a one-year extension of the deadline for private company lease accounting compliance changes at the request of the American Institute of Certified Public Accountants (AICPA). For companies such as rue21, delaying compliance efforts were not an option.
rue21 is a privately held retailer specializing in young women’s and men’s apparel and accessories that is headquartered in Warrendale, Pennsylvania. Founded in 1970, rue21 has nearly 700 stores located in 45 states. rue21 has 700 real estate leases and operates more than 1,500 assets on equipment leases. Because of its large portfolio, rue21 realized that they would be faced with initial lease accounting compliance efforts and the task of ongoing compliance.
When it evaluated potential lease accounting solutions, rue21 had the most confidence that the Lucernex team could meet its needs and deliver the most accurate solution. Their confidence was based on the accounting team’s trust in the Lucernex accounting system and the experience of other Lucernex and Accruent customers that indicated a high level of satisfaction with the solution and the services delivered to support the solution.
“We have a high level of trust in Accruent’s expertise and their ability to deliver the software and services that we need,” said Jim Signoriello, Director of Real Estate Finance, rue21. “For a company with hundreds of locations like rue21, lease accounting compliance is a significant project. Accruent gives us the confidence that our systems will be set up properly and allow us to manage compliance going forward.”
Accruent’s Lucernex Lease Administration and Accounting solution helps hundreds of companies track their leasing obligations to assure compliance with FASB, IASB and GASB requirements, as well as make informed business decisions to maximize the return on lease investments. Lucernex is trusted for real estate and equipment lease management and accounting by many of the most recognizable retail brands in the world.
“Lease accounting compliance is a large undertaking, especially for private companies that have many leases managed by different groups across the organization,” noted Robert Abdul, Vice President of Retail, Accruent. “For a company like rue21, this means working fast to deliver styles that aren’t available elsewhere. Providing them a platform to manage compliance saves them time and resources that allow them to focus on their customers and their mission.”
