Retailer rue21  has selected Lease accounting software provider Accruent’s Lucernex solution to manage the company’s compliance with the Financial Accounting Standards Board (FASB) new lease accounting standard.

FASB Standard ASC 842, passed in 2016, requires corporations and other entities to classify all leases and report operating leases and finance leases lasting more than twelve months on their balance sheets. U.S. private companies must comply with FASB 842 in its first fiscal year beginning after December 15, 2019, unless a recently approved delay is enacted.

Founded in 1970 and headquartered in Warrendale, PA, rue21 is a privately held retailer specializing in young women’s and men’s apparel and accessories with nearly 700 stores located in 45 states. rue21 has 700 real estate leases and operates more than 1,500 assets on equipment leases. Because of its large portfolio, rue21 realized that they would be faced with initial lease accounting compliance efforts and the task of ongoing compliance.

When it evaluated potential lease accounting solutions, rue21 had the most confidence that the Lucernex team could meet its needs and deliver the most accurate solution. Their confidence was based on the accounting team’s trust in the Lucernex accounting system and the experience of other Lucernex and Accruent customers that indicated a high level of satisfaction with the solution and the services delivered to support the solution.

“We have a high level of trust in Accruent’s expertise and their ability to deliver the software and services that we need,” said Jim Signoriello, director of Real Estate Finance, rue21. “For a company with hundreds of locations like rue21, lease accounting compliance is a significant project. Accruent gives us the confidence that our systems will be set up properly and allow us to manage compliance going forward.”

Accruent’s Lucernex Lease Administration and Accounting solution helps companies track their leasing obligations to assure compliance with FASB, IASB and GASB requirements, as well as make informed business decisions to maximize the return on lease investments.

“Lease accounting compliance is a large undertaking, especially for private companies that have many leases managed by different groups across the organization,” said Robert Abdul, vice president of Retail, Accruent. “For a company like rue21, this means working fast to deliver styles that aren’t available elsewhere. Providing them a platform to manage compliance saves them time and resources that allow them to focus on their customers and their mission.”