With the IFRS 16 deadline fast approaching, organizations that rent or lease assets have begun to identify and implement processes and technologies that will help them comply with the new leasing standard. This change in compliance is not a small undertaking for many organizations—most notably for those that lease high-volume assets or that deal with complex lease contracts, such as real estate, machinery, IT equipment, and vehicles.
In a recent webinar called “IFRS 16 implementation: Using the Anaplan app,” I discussed how organizations can prepare for—and overcome—any potential challenges in meeting the requirements of the new standard. Additionally, I explored five distinct benefits of the Anaplan platform that provide organizations with the capabilities that they need in order to comply with IFRS 16, and any other standards that will inevitably surface in the future.
Start preparing for IFRS 16 by evaluating your options
I’ve seen organizations approach the complexities of IFRS 16 compliance by exploring two different kinds of technologies: either the adoption of an asset and contract management solution that has been enriched with IFRS 16 logic; or the deployment of a corporate performance management solution, such as the Anaplan platform, that has built specific applications for compliance within its toolkit.
The latter is more appealing as an approach because asset and contract management systems tend to be more arduous to build and maintain, and they are usually more expensive. For organizations evaluating how to best ensure IFRS 16 compliance, the considerations below are an excellent starting point to help identify where any process or technology change might be needed.
- How do we handle intercompany subleases?
- What do we do with cost center allocation requirements?
- Do we consider tax accounting compliance in the scope of our project?
- How do we reconcile anticipated lease payments to actual lease payments?
- How do we upload lease contract information into our IFRS 16 solution?
- Do we prepare comparative data and reporting year over year?
Exploring these questions often provides the context needed to help organizations identify how it can comply with the new standard and understand its impacts.
Using the Anaplan platform to comply with IFRS 16
For organizations that are using or exploring the possibilities of the Anaplan platform, the solution, along with its IFRS 16 app, makes IFRS 16 compliance a simpler process by providing all the required features that organizations need.
Here are five features that the Anaplan platform and its app provide to organizations affected by the new leasing standard.
- The platform itself is easy to deploy. As a cloud-based platform, there is minimal effort needed to get up and running quickly.
- The app is comprehensive and easy. The Anaplan IFRS 16 app is simple to use, helps organizations comply with the standard, and needs very limited customization.
- The app includes end-to-end capabilities. The app is a complete solution that includes workflows and analytical capabilities, providing organizations with a comprehensive, start-to-finish approach.
- Contract entry and modification is simple. Lease contract maintenance is intuitive and allows for adding any contract modifications on top. This makes contract entry and modification an easy task for users.
- Calculations are validated by PricewaterhouseCoopers (PwC). The IFRS 16 calculations within the app have been validated by PwC.
To find out more—and to see an in—depth demo of the IFRS 16 app-watch the recording of “IFRS 16 implementation: Using the Anaplan app.”