What is IFRS 16?
IFRS 16 is here. By requiring virtually all leases to be included on the balance sheet, the new standard aims to bring an enhanced level of accuracy, transparency and accountability to financial reporting.
For your financial team, the biggest change is the removal of the distinction between finance leases and operating leases. From premises through to big-ticket office equipment, IFRS 16 demands detailed consideration of lease data relating to a potentially huge range of assets – many of which were previously dealt with off-sheet.
Under the new regime, active lease management is essential. Failures in data collection, calculation and disclosure can all mean sleepwalking towards non-compliance. This can lead to loss of investor and partner confidence, severed credit lines and (in the case of listed companies), regulatory intervention: risks that few businesses can afford to encounter.
Next-gen lease accounting: Why it’s time to move beyond Excel
IFRS 16 demands a whole new approach to lease contract inventories, processing, updating and recording.
Accurate assessment of assets and liabilities demands detailed lease-by-lease consideration of multiple data points, including contract parameters and incremental borrowing rates: matters that are hard going even for the most skilled accountants.
The days of calculating lease costs via straight lining are gone. You cannot ‘get by’ with Excel. For your finance team to stay on top of their obligations - without recourse to expensive outsourcing - the following capabilities are a must:
The Answer: CCH Tagetik IFRS 16 - Your Compliance Engine
Formulated for IFRS 16, CCH Tagetik Lease Accounting is designed to ensure compliance, while providing an effective framework for managing a growing volume of lease accounting data.
Here are its capabilities:
The MHR Analytics Difference: Adding value to your software – and your figures
At MHR Analytics, we never “sell software”. With proven expertise across multiple sectors – including retail, logistics, manufacturing and banking, we are committed to ensuring you stay up-to-speed with changing regulation, while maximising operational efficiency.
For your finance team, this includes the ability to connect all your data, to ‘do more with less’ on the reporting side – and extract real insight from your figures.
Here’s the MHR Analytics difference:
Full support. Giving your people the training and confidence they need to get the most out of the CCH platform.
Data health check. Addressing integrity and warehousing issues – ensuring you can always trust the numbers.
Integration and implementation. Minimising disruption and ensuring seamless integration with existing architecture.
Discover how CCH Tagetik can help you stay on top of compliance and streamline your lease accounting processes. No obligation – just expert advice you can trust.
…DON’T GET LEFT
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