Unlocking Efficiency: Viareport Lease Streamlines Sublease and Sale & Leaseback Management

Since the pandemic spurred the work-from-home revolution, commercial properties have become ghost towns. Pandemic-era lockdowns taught employers and employees that most jobs can be done from home just as well as – if not better than – at the office.

With only about 40% of employees now willing to regularly commute to the office, corporate offices sit mostly empty, and organizations are looking for solutions to their unused office space. Organizations that own their own properties are achieving this though the sale and leaseback of their space, while businesses who lease their office space from a commercial property manager are finding sublease tenants for their empty space.

Each of these solutions has their merits, but also carries unique compliance and accounting challenges. That’s where Viareport Lease from insightsoftware comes in.

Since 2017, Viareport Lease has been your one-stop solution for centralized lease management, ensuring that your lease contracts comply with IFRS16, ANC 2020-01, and IAS17 standards without spending hours validating data across your consolidation and accounting systems. It can quickly automate your manual leasing processes and its multi-language capabilities make for a smooth deployment in multi-national organizations. Boasting a flexible, user-friendly design, Viareport Lease optimizes your lease contract management processes for greater efficiency, security, and collaboration.

Viareport Lease is regularly enriched with new capabilities and adapts continuously to the evolution of leasing standards, including the recent additions of sublease and sale and leaseback management.

Sublease Management

While subletting unused office space is an ideal way to offset costs and give remaining onsite employees a more intimate environment, it’s not ideal for corporate property managers. Because a sublease is a transaction in which a property is leased by its lessee (the tenant) to a third party while the original lease agreement between you and lessor is still in force, it creates added layers of complexity for compliance and bookkeeping.

Property owners and managers need to ensure compliance with all applicable legal and regulatory requirements related to sublease contracts, including laws governing lease agreements, tax regulations, accounting standards, and any specific industry regulations. Viareport Lease ensures full compliance and makes it easy to manage the complex documentation and reporting around lease abstraction, modification, and restructure.

By leveraging Viareport Lease to automate your sublease data management, compliance, and reporting tasks, you’re able to:

• Add two new events related to the creation and termination of subleases.
• Differentiate treatment between operating leases and finance leases.
• Create new sublease payment schedules and tables for monitoring financial receivables.
• Monitor accounts and flows for recording accounting entries.

Sale and Leaseback

A sale-and-leaseback transaction is a financial arrangement in which an entity sells an asset to another party and immediately leases it back, allowing the seller to free up capital while retaining the use of the asset.

Sale and leaseback transactions can be structured to benefit both the seller/lessee and the buyer/lessor, however, all parties must consider the business and tax implications, as well as the risks involved in this type of arrangement.

Evaluating the financial impact and feasibility of sales and lease-back transactions can be complex. Finance teams need to conduct detailed financial analysis, including assessing the impact on cash flow, profitability, and return on investment. Making informed decisions requires a thorough understanding of the specific asset being sold, lease-back terms, market conditions, and potential tax implications.

Regulatory compliance is of particular importance in sales and lease-back transactions, as these transactions are subject to various legal and regulatory requirements. Viareport Lease ensures compliance with accounting standards such as IFRS 16 and ANC 2020-01, tax regulations, and any industry-specific rules.

Viareport Lease’s sale and leaseback management features allow you to:

• Differentiate calculation treatments between operating leases and financial leases.
• Differentiate accounting treatments between the application of ANC 2020-01 and IFRS 16.
• Choose to spread the capital gain on disposal by accounting standard.

Meet Today’s Challenges with Viareport Lease

As businesses continue to grapple with the post-pandemic challenge of underutilized commercial space, Viareport Lease makes it easy to navigate the challenges of sublease and sale and leaseback arrangements. It is a scalable solution designed to support the needs of larger organizations and can manage over 100,000 active leases with rich operational capabilities, such as easy integration, streamlined processes, enhanced data accuracy, and multi-dimensional analysis for consolidated accounts. Schedule a demo to see how Viareport Lease can optimize the management of your lease contracts today.