IFRS 16 is now effective, as of the 1st January 2019, and covers annual reporting periods starting on or after 1 January 2019. If you are one of those companies who is affected by this, you can read more about IFRS 16 in this article, ‘IFRS 16 compliance is now in play, are you ready?’.
HAYNE have been working with our clients to help them work towards becoming compliant, in the most effective and painless way possible. This has meant understanding their current processes, IFRS 16 requirements and then finding the right solution which delivers the results they need.
At HAYNE we have close partnerships with leading Financial Performance Management software vendors, such as IBM and CCH Tagetik, who offer IFRS 16 solutions. This puts us in a prime position to offer a rounded view on the solutions most suited to our clients. We are both Gold IBM Partners and official CCH Tagetik Partners, and therefore want to share with you our thoughts on each solution. To get a full rounded view, take a look at our other post, ‘What is IBM’s solution for IFRS 16 Compliance management?’ where we delve into IBM Planning Analytics Solution Accelerator for IFRS 16.
In this post, we delve into CCH Tagetiks IFRS 16 solution. CCH Tagetik is a leader in global corporate performance management software solutions. Like HAYNE, it is fully focussed on solutions for the CFO and the Finance Team. They offer an impressive integrated, cloud-enabled, financial and corporate performance management technology platform, of which they have expanded to handle the IFRS 16 compliance requirements. We are a UK partner of CCH Tagetik, therefore have been able to see the software up close and personal in order to provide our clients, and you with an unbiased look at what the technology delivers.
CCH Tagetik – Lease Accounting: ASC 842 & IFRS 16 capabilities
Powerful Calculation Engine
The solution starts you on the way to compliance with a preconfigured data model and leasing calculation models. With CCH Tagetik, you can import and/or input data including leasing contract info, asset details, fixed and variables lease parameters. All lease exemptions are shown in one view to compare and adjust for IFRS 16/ASC 842 and Transition period. Graphically view assets, liabilities, expenses, depreciation and interest expense to show impact on Balance Sheet and Profit & Loss using different scenarios. Results can be viewed IFRS/ASC full amounts and Delta bookings for ‘as-is’ and ‘to-be’ analysis.
Leasing Data Mart
The solution creates a corporate leasing data mart for IFRS 16 & ASC 842 and other reporting requirements. From the single version of the truth, you can accurately calculate, report and disclose while minimising risk. CCH Tagetik integrates with Qlik Sense and Microsoft BI solutions so you can easily analyse and drilldown as deep as you need to. When you’ve got the confidence in your numbers, you can spend more time on analysis and forward planning.
A pre-built solution
Out of the box, users get a data model that’s compliant. The kit includes preconfigured calculations, workflow and a suite of modelling tools, so that you can extend and manage a library of leasing data models. Maintain contract models for lease type (land, vehicles, computers etc.). Calculate right of use (RoU) Asset and liabilities for present value of its future lease payments. Calculates a depreciation charge for lease assets, and an interest expense on lease liabilities.
CCH Tagetik’s ETL capabilities allow you to seamlessly import or export data from any source system. Without disrupting your existing architecture, our IFRS solutions integrate with all systems including CCH Tagetik CPM and non-CCH Tagetik applications. Import or export data from any source with the confidence.
Modelling and calculation engine
With CCH Tagetik’s calculation engine and the power of analytics, you can process and calculate large volumes of data quickly. Flexible modelling allows you to easily configure and maintain calculation logic and rules with a Finance-friendly interface to stay compliant.
Disclosure and reporting
A single version of data makes it easy to analyse, drill down to details, and report while adhering to IFRS 16 & ASC 842 disclosure requirements. With our additional Collaborative Office solution, you can easily create a MS Word financial statement, a pdf board book, a PowerPoint presentation or a submission to regulators; have complete confidence that numbers and narrative are accurate and auditable.
Whatever stage of the journey towards meeting IFRS 16 compliance you’re at, why not do one of the following;