Does your IFRS 16 solution have these Five Key capabilities?Sarah Whitworth
A growing number of Auditor’s Reports have flagged up weaknesses in the spreadsheet-based solutions utilised to meet IFRS 16 compliance. As a result, many organisations are having to revisit their choice of IFRS 16 solution.
Businesses are feeling under pressure to choose the right IFRS 16 solution – which will both satisfy the audit and meet the lease accounting requirements of the Finance Team.
The IFRS 16 requirements for lessees, in brief, are that all leases (subject to exemptions) need to be recognised and identified on the balance sheet. Then for each, you must:
- Estimate the lease term
- Calculate the lease liability
- Recognise a right-of-use asset
From our recent experiences of implementing CCH Tagetik IFRS 16 Solution for Lease Accounting Management with major brands such as Smith & Nephew, TI Automotive and Gama Aviation – we have formed a clear picture of the key system capabilities that you need to have an efficient and compliant IFRS 16 solution. Here are FIVE of them…
Five key requirements for a robust IFRS 16 solution:
- Importing of lease data – Handling large volumes of lease data from differing data sources
- Leasing data repository – Automated data verification to ensure consistent and complete information
- Lease exemptions adjustment view – All lease exemptions shown in one view to compare and adjust for IFRS 16 and the transition period
- Calculation of assets, liabilities, expenses, depreciation and interest expense – with lease modeling capability in order to see and predict the impact on leases and financial statements
- Graphical report view of the impact on Balance Sheet and Profit & Loss – Timely reporting in a short time-frame
What is a good IFRS 16 Solution?
We work with leading CPM/FPM technology providers, and we have found that CCH Tagetik’s IFRS 16 solution is proving to be a great solution. With 150 successful implementations under its belt, it’s leading the way as being a proven solution for leasing regulation compliance. Check out the CCH Tagetik IFRS 16 Demo Video here.
It’s integrated too!
It’s not just good for IFRS 16 compliance, CCH Tagetik is an integrated CPM/FPM solution which meets all your finance team needs such as close & consolidation, budgeting and reporting.
More about CCH Tagetik – Unified Corporate Performance Management Software.
HAYNE can help
We are official UK CCH Tagetik Partners and we specialise in CCH Tagetik IFRS16 and can implement, train and support you on planning, training and implementing your CCH Tagetik solution. We don’t just sell the software, we become your partner and provide all the resources required for implementation; project management, consultancy and training.
Whatever stage of the journey towards meeting IFRS 16 compliance you’re at, why not do one of the following;