CoStar facilitated the management and reporting of more than 100,000 real estate and equipment leases to meet this global organization’s ASC 842 and IFRS 16 compliance needs.
This multinational Fortune 50 organization is the world’s largest package delivery company and operates more than 100,000 motor vehicles, 5,000 retail store locations and 500 aircraft in more than 200 countries and territories. The company generates more than $60 billion in annual revenue and delivers 20 million packages and documents every day.
With more than $1 billion in lease obligations, compliance with the new FASB and IASB lease accounting standards represented a significant challenge for the company’s global accounting and finance team. CoStar provided solutions for the company’s real estate lease operations since 2003 and lease accounting for ASC 840 since 2007. But when the new ASC 842 and IFRS 16 guidance was announced, a solution for managing and reporting on more than 95,000 equipment leases worldwide was also needed. Gathering and organizing the voluminous amount of lease data from various locations and stakeholders across the organization would be a tremendous challenge.
CoStar’s cloud-based software was ideal for the entire organization, since it easily scales to support unlimited global users at no additional cost. The company retested CoStar’s lease accounting and management system over the course of 18 months to ensure it would effectively handle the extreme diversity of leases the company has, which include retail stores, warehouse facilities, aircraft, airport terminals, vehicles, hand-held electronics, computers and much more.
The company’s accounting and finance team was able to fit a tremendous amount of lease data into one package and begin to more effectively manage and report on the data. The proven track record of lease management and comprehensive lease accounting functionality made CoStar the smart choice for ASC 842 and IFRS 16 compliance.