IFRS 16 template for SAP BPC

SAP BPC, Consolidación, Presupuestación, Reporting Financiero, Control de Gestión, IFRS 16, Lease Management, Lease Accounting
SAP BPC, Consolidación, Presupuestación, Reporting Financiero, Control de Gestión, IFRS 16, Lease Management, Lease Accounting

Our IFRS 16 template based in SAP BPC to boost efficiency managing leases accounting.

 

The accounting activities of leases has evolved significantly due to the entry of the new IFRS 16 accounting standard on January 1, 2019 from the standpoint of the lessee. The lessor's accounting did not introduced significant changes due to the IFRS 16. 

 

This new regulation introduced changes in the accounting and negotiation of leases in order to increase the transparency and comparability of financial statements between companies.

 

The regulation removed the obligation to distinguish between operational and financial leases, making most contracts to be managed as financial leases, forcing companies to recognise assets (right of use) and liabilities (committed payments) in their Balance Sheet.

SAP BPC, Consolidación, Presupuestación, Reporting Financiero, Control de Gestión, IFRS 16, Lease Management, Lease Accounting

Challenges associated with the IFRS 16 standard.

 

In this scenario of regulatory change, many companies have experienced an increase in the complexity of their operational processes given the higher volume of information to process in order to comply with IFRS 16.

 

The use of traditional spreadsheets limits some activities such as the contract data retrieve from information systems, the rapid generation of projections of lease payments, the maintenance of traceability and the integrity of the data, making the reporting process tedious and less accurate and reliable. 

Therefore, having an integrated solution that allows smooth operations  and efficiency gains associated with IFRS 16 is of vital importance when the volume of lease contracts becomes relevant.

SAP BPC, Consolidación, Presupuestación, Reporting Financiero, Control de Gestión, IFRS 16, Lease Management, Lease Accounting

The Future of Finance Function in collaboration with Opal Wave, we managed the IFRS 16 template deployment in your SAP BPC platform and help your organization to obtain the following benefits:

  • Accuracy increase of the reported data improves the accuracy of the “Right of Use” and EBITDA.

  • Generating efficiencies through the automation and decentralization of certain processes to free up time for finance professionals so they can focus on analyzing the lease contracts conditions and their accounting implications.

  • Internal costs savings removing some low value-added activities such as the introduction and maintenance of contracts, generation of payment forecasts or manual coding of the adjustments to be included in the consolidation model or company ledgers.

  • Risks reduction as result of using a platform linked to a database where the data is stored and where the origin and modifications of the information can be traced.

SAP BPC, IFRS 16, Lease Management, Lease Accounting
Let´s initiate together the journey towards the Smart Finance Function!