If you process invoices regionally in payment factories or shared service centers, be sure to contact the international locations. Under the current lease accounting standards, capital leases are reported on the balance sheet and operating leases are reported in a notes disclosure. Contact your SEC Reporting or Technical Accounting organization to find out how the data for capital and operating leases is being collected for your quarterly reports today.
At most companies, details about lease accounting are maintained on spreadsheets , which are rolled up at a business unit or geographic level into a consolidated report that is used as the basis for SEC filings. If you follow these spreadsheets down the chain to their source, you will find increasing levels of detail — perhaps even an inventory of leases at a country or business unit level.
At many companies, the corporate treasury organization plays a key role in the leasing program. As the owner of the balance sheet and the manager of credit relationships, corporate treasury wants to ensure that the economics of the leasing program are being optimized for the business.
Corporate Tax groups may also be involved in leasing programs as most agreements require the lessee to pay property taxes on these assets. In most cases, the information might be kept in a spreadsheet, but it can provide important clues to helping you pinpoint the actual lease agreements. Larger companies and some mid-sized organizations have dedicated lease administration teams. These groups might sit in the corporate real estate department with a scope limited to buildings and land.
Alternatively, the lease administration team might be part of a larger shared services function with a broader scope that includes IT, fleet, and other equipment leases. The lease administration team is a natural first place to start when searching for your leasing contracts.
However, keep in mind that at most companies lease administration teams are overworked and understaffed. As a result, they may have struggled to maintain a complete repository of leasing contracts. Many companies track all of their technology equipment in an IT asset management system. Comprehensive records on the serial numbers, MAC addresses, makes, models, warranties, and service contracts for everything from laptops and printers to servers and storage arrays can be found in these asset management applications.
IT asset management applications are less likely to store the actual lease contract. However, these systems do provide important clues about what is leased, where it is located, and who is responsible for the equipment. Ask your IT organization for a list of all desktop hardware, mobile devices, peripherals, networking, and data center assets that are associated with leases.
Some companies outsource part or all of their corporate IT functions to third parties. Firms such as Accenture, Wipro, and TCS can assume day-to-day responsibility for everything from end-user desktops and email systems to ERP applications and data center infrastructure.
These outsourced firms may have their own IT asset management systems which track assets owned or leased by your company. Alternatively, IT outsourcing companies may have purchased desktops, printers, servers, networking, or storage devices which they operate on your behalf. Ask your IT outsourcing organization for a list of all shared and dedicated assets being used on your account. Organizations with large fleets of vehicles may have invested in a formal fleet management system.
Details such as identification numbers, driver assignments, and service histories are maintained for each vehicle from delivery trucks to company cars. Fleet management applications may store copies of the associated master lease agreements. However, even if the contract is not housed in the fleet management system, important clues about where to find your lease agreements, such as the name of the leasing company and the department operating the vehicle, will be.
Ask your fleet organization for a list of all vehicles currently under lease. Most large companies and many mid-sized organizations have established centralized corporate real estate teams to manage their properties. These organizations have invested in specialized real estate systems to track new construction projects, perform space planning, and administer leasing contracts.
Known as integrated workplace management systems or real estate administration systems, these applications track the property addresses, base and variable rents, critical dates, and contract clauses for leases.
Before you sign, take the time to read the entire document. It should also state the date the lease was signed; the beginning and end dates of the rental period; and options for lease renewal, including policies for rent increases.
If any appliances are in the unit such as a range, refrigerator, or washing machine , or if the unit is furnished, that should be included, too. People tend to pay close attention to how much rent will cost each month, but there may be other costs that should be noted as well, including various deposits and fees.
Details about any deposits—such as an upfront security deposit or fees for parking or pets—should also be clearly stated, along with conditions for getting your money back. The lease should state particulars about the rent:. The lease should indicate policies regarding utility service and billing. Be sure to find out which, if any, utilities are included as part of your monthly rent, and whether you are expected to cover any of the costs.
Some landlords, for example, pay for electric, water, and sewer services, while the tenant pays for cable and Internet. This is something to pay close attention to since it can end up costing a lot of money, time, and headaches. In other situations, the landlord might repair or replace only major appliances but leave the tenant responsible for everything else.
And then there are agreements where the tenant is responsible for all the costs of repairs and maintenance. There may also be stipulations about the maintenance of the yard or outside areas. Make sure you're clear on who pays for what, who arranges service calls, and the amount of time you and your landlord have to address any issues. If you have a pet, read the lease to find out if animals are allowed, and if so, whether there are any size or breed-specific restrictions some rental properties allow most dogs, but not pit bulls, for example.
If the lease contains a no-pets clause and you violate it by bringing a furry friend into your unit, the landlord generally has the legal right to evict you. The lease should describe the acceptable use of the property e.
The lease should explain what you need to do before moving out. How much advance notice is required?
What type of cleaning are you responsible for? The lease should also state your options if you have to move out before the lease expires. Can you sublet the property, for example? Bear in mind that while many of these policies are at the landlord's discretion , others such as the landlord's right of entry and eviction may be regulated by state or city ordinances.
This document can become important if any disagreements arise regarding the property or anything related to your tenancy. Also, plan on doing a thorough property examination before signing the lease. Check the general condition of the property and make sure items such as appliances, faucets, plumbing, windows, and window fixtures are in good working order.
Note and document any existing damage in the lease or in a provided damage assessment form, and keep a copy of this with your contract—just in case. Request that it be delivered in a reasonable time frame, such as three to 10 business days. Keep a copy of the letter of request for your records. The landlord must sign for the letter, and you'll have a proof that the letter was received. This may be necessary to prove to a judge that you earnestly requested a copy of your lease.
Follow up with a phone call if you do not hear from the landlord. A landlord who does not provide his tenant with a copy of his lease will be in an unfavorable position if he has to answer to a judge. Find out how long the landlord has to comply, then call a local tenants' rights organization if the time has elapsed and you still don't have a copy.
0コメント