Partnership helps companies quickly accommodate new lease accounting standards
DENVER, CO and CHICAGO, IL – July 22, 2022 – Netgain, an application developer focused on creating solutions that address complex finance and accounting challenges, and Donnelley Financial Solutions (NYSE: DFIN), a leading risk and compliance company, today announced a partnership designed to help companies address complex lease accounting and compliance reporting.
By leveraging DFIN’s ActiveDisclosure, a cloud- and browser-based financial reporting software, and NetLease, companies can more easily prepare for Initial Public Offerings (IPO) and strengthens gap compliance analysis to ensure SEC regulations are being followed. This new end-to-end solution is platform-agnostic and seamlessly integrates with common software solutions such as Enterprise Resource Planning, accounting, and HR.
In January 2019 and again in January 2022, the SEC updated lease reporting standards. Under the new rules, entities must report a liability representing the amount owed under the lease agreement and a right-of-use (ROU) asset that represents the benefits derived from use of the leased asset over the term of the lease. This impacts the balance sheet and commonly used financial ratios, such as debt to equity, and return on assets.
“We are excited at the prospect of working closely with Netgain to help companies prepare for IPO filing,” said Craig Clay, president of global capital markets at DFIN. “Combining our industry-leading ActiveDisclosure solution with NetLease for NetSuite’s award-winning lease accounting technology reduces the time needed to review sensitive accounting documents, while simultaneously streamlining the IPO reporting process. The combined offering helps companies preparing for IPO ensure the highest level of data integrity.”
These pre-IPO companies must demonstrate compliance with U.S. Generally Accepted Accounting Principles (GAAP) to satisfy the SEC and prospective investors. Lease accounting can vary depending on whether you’re the lessor or lessee, but all reporting needs to show balance sheets, cash flow statement, and income statements. Leveraging DFIN ActiveDisclosure and NetLease for NetSuite provides customers with the confidence that reports are audit-ready in native NetSuite.
“Both DFIN and Netgain are leading best-of-breed, cloud-based software solutions that reduce the risks and headaches that are associated with SEC filing,” said Adam Riches, CEO of Netgain. “Customers that adopt our combined solution will benefit from our advanced reporting features that strengthen collaboration, reduce risks, and help expedite the complicated lease accounting reporting process.”
For more information about ActiveDisclosure, please visit https://www.dfinsolutions.com/products/activedisclosure. For more information about NetLease for Netsuite, please visit https://netgain.tech/netlease-for-netsuite/