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IFRS 16

When IFRS 16 replaced IAS 17 as the accounting standard for lease commitments, many businesses found themselves relying on short-term solutions. Since the January 2019 deadline, software such as Microsoft Excel has been widely utilised without much focus on its longevity or scalability.

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This short-term solution is now proving problematic for growing, forward-thinking businesses, as a result of:

 
 
  • Growing complexity lease arrangements
  • Lease modifications and adjustments
  • Execution of termination or other options
  • Adjustments to group structure and acquisitions

These short-term, point solutions only have one use: their lack of flexibility is where they fall down. Alternatively, many modern solutions might tackle one initial challenge for your team, but can be upgraded and expanded upon to comply with multiple initiatives.

 

A platform approach to IFRS 16 compliance offers a long-term, sustainable solution, with the additional benefits of reporting and modelling, which can help support your decision making and grow your business.

 
 

A standardised lease-management system

VantagePoint’s solution enables the upload of lease information and data from a variety of sources and formats. This limits the common data preparation challenges faced by many CFOs and their finance teams.

Following payment terms and rules, the platform then generates a right-of-use asset and corresponding liability posting for you in a standardised output.

Benefits of this system include:

IFRS 16 journals can be automatically generated and uploaded into your general ledger.

The in-built reporting capabilities allow you to understand your financial position, enabling a quicker close.

More accurate results and flexible reporting means that decision making can be data-driven and offers value to your wider business.

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Why VantagePoint?

Thinking about technology to navigate IFRS 16 is only the start.

VantagePoint has unrivaled knowledge to consult on IFRS 16 technology and reporting. We have implemented IFRS 16 solutions across 30+ FTSE 100 companies with large, complex lease portfolios.

If you’d like to find out more, contact one of our IFRS 16 specialists today.

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