New Lease Accounting Package Developed by iiSeikatsu and NTT Data Business Brains

Introduction

In a significant step towards digital transformation in the real estate sector, iiSeikatsu, a pioneering company in real estate cloud solutions, has joined hands with NTT Data Business Brains to develop a new package tailored to the upcoming lease accounting standards that will come into force in April 2027. This collaboration aims to ease the burdens faced by medium-sized enterprises in various sectors by offering an efficient and cost-effective solution to manage lease agreements and associated accounting requirements.

Background of Development

Starting from April 2027, the new lease accounting standards, specifically the Accounting Standard No. 34 related to leases, will mandate that all rental agreements—spanning office spaces, retail locations, and warehouses—be reflected on the balance sheet as assets and liabilities. This shift will enforce what is known as the “on-balance-sheet” requirement, drastically altering how companies manage their leases.

For medium-sized enterprises, particularly in retail, food and beverage, and service industries that manage multiple locations, the transition presents a daunting task. These businesses face the challenge of organizing an extensive array of contract data and recalculating lease conditions with any changes in rent or duration, which adds complexity to their operational efficiencies.

Currently, the market offers two primary options for these businesses: high-cost ERP systems, often exceeding millions of yen, or the risk-laden manual processes using Excel spreadsheets. Thus, there exists a pressing need for a third option that allows medium-sized companies to manage these requirements efficiently and at an appropriate cost.

Combining Strengths

To address this gap, iiSeikatsu and NTT Data Business Brains are set to develop a package that leverages their individual strengths:

1. iiSeikatsu (Information Processing): Leveraging expertise gained from their real estate-focused SaaS, iiSeikatsu will accurately digitize unique real estate data points that traditional accounting software often overlooks. This includes aspects like parking spaces, shared expenses, and options for contract termination.

2. NTT Data Business Brains (Calculation Engine): The package will utilize Slopebase, a no-code cloud database tool from the NTT Data group. This technology will serve as the calculation engine, automating the complex computations required for lease accounting while allowing for customizable management elements for individual companies.

This strategic combination aims to create a seamless workflow, enabling automatic generation of accounting entries simply by updating property information—removing the need for redundant data entry.

Future Prospects

The new lease accounting package is expected to be officially released in October 2026. To prepare businesses for the upcoming changes, both companies will begin hosting a series of practical webinars starting in June, specifically targeting the accounting and administration departments of multi-location businesses. These sessions will provide concrete methods for adapting to the new standards.

Through this project, iiSeikatsu and NTT Data Business Brains aim to minimize compliance costs for medium-sized enterprises while significantly enhancing their back-office operations through digital transformation.