THE CHALLENGE
Given that the company had previously been managed under Japanese standards, the shift in ownership presented numerous organizational and procedural challenges, among the most pressing of which were:
- The need to comply with both US GAAP and J GAAP.
- Significant policy and procedural changes, highlighted by a recent audit.
- Significant changes to company financials, particularly focusing on accounting treatments used in the leasing side of the business.
- Actual implementation of new procedures and processes.
OUR APPROACH
Ascendant began by first understanding the issues and identifying the key stakeholders involved. We then began a process to identify, collect and assess data on all lease transactions that might be affected by the new accounting requirements. Leasing contracts were sourced from many different company locations, none of which had ever been required to share details of their leases, thus a coordination unit was set up to support this.
- Deliverable: Data Collection and Assessment
Leasing contracts were sourced and key items were identified to assess lease types. A tool was designed and created to calculate relevant accounting entries organizing leasing data to the correct accounting requirements. - Value:
With our knowledge of US GAAP, we were able to design the optimal processes and identify critical items for assessing a lease contract's implications with regards to US GAAP. Just as important, we worked to transfer that US GAAP knowledge to the client allowing them to control and lead future efforts.
- Deliverable: Assessment Systems and Tools
Ascendant developed a database specifically designed to capture the lease transaction data collected in the early stages of the project. We then coordinated a team of 20 temporary staff to efficiently source and analyze thousands of lease contracts, based on guidelines created during the assessment process. - Value:
The tools and documentation developed by Ascendant specifically for this project, along with our extensive advance planning, helped to ensure that all past and current leasing contracts were clearly understood in terms of their US GAAP implications. The necessary, and significant, adjustments to the client’s accounts were then quickly calculated and posted on schedule.
- Deliverable: Communications and Ongoing Support
The Ascendant team took a highly proactive approach in the coordination of communications with, and delivery of support to, various groups that had not worked together before. We established a coordination unit to manage communications, and a support point to assist company locations beyond the completion of the engagement. - Value:
Our coordination ensured critical tasks stayed on track, and our ability to deliver support even after the completion of the project provided the client with the confidence it needed to take on this endeavor.
