CoStar’s enabled this global organization to retain investments in legacy lease management systems, avoid expensive upgrades and rapidly implement ASC 842 and IFRS 16 compliance solutions.
This social media technology company has more than 2 billion active monthly users worldwide and generates more than $40 billion in annual revenue.
Having more than $1 billion in lease obligations across a variety of right-of-use asset types, compliance with the new FASB and IASB lease accounting standards represented a significant challenge and expense for the company. With a low level of corporate debt, there was a strong interest in understanding how significant the new lease standard would impact the balance sheet. The organization had an interesting mix of leased assets to manage, ranging from fiber optic lines and proprietary data center equipment to hosting facilities and campus buses for employee transit. Business partner and stakeholder buy-in was also a critical factor for the successful adoption of any new technology solution.
CoStar’s cloud-based lease accounting software was selected in a joint implementation and advisory services effort with PwC. Ease of use, reporting and a flexible licensing model were priorities for the company. CoStar migrated the company’s real estate lease data from another management system while integrating its equipment leases from an in-house system via a proprietary data connector. CoStar’s unlimited system user model was also able to incorporate third-party user access for CBRE real estate lease administrators, providing seamless and easy access to system data and creating workflows for managing document changes.
The company’s lease data is now better connected to stakeholders both across the company and among service providers that help ensure the continued growth of the business. The easy-to-use functionality of our lease accounting software made CoStar the smart choice for this tech giant’s ASC 842 and IFRS 16 compliance needs.