IFRS 16 and ASC 842

January 1st 2019 is the effective date of the new leasing standard IFRS 16. The standard requires material lease contracts to be presented on-balance to allow for a more representative overview of debt and financial leverage. As a consequence it virtually eliminates the existing accounting treatment differences between purchases, finance leases and operating leases.

We have gained relevant experience with the implementation of IFRS 16 at midsize and large corporations including Randstad Holding N.V., who started implementing IFRS 16 already as early as 2017. Our experience covers the entire spectrum of project initiation, tool selection, lease data assessment, deployment and delivery within the corporation.

There are many questions surrounding IFRS 16, such as:

• How do I deal with the practical expedients provided in the standard?
• Which systems and what processes are impacted by the standard?
• Which tools that support lease accounting are available in the market and which one fits to our requirements?
• In what order do I deliver the activities to most efficiently implement IFRS 16?
• What do I have to do to ensure the involved colleagues are provided with the necessary knowledge and skills?
• How do I ensure that I do not oversee any relevant aspects?

And of course:

• What are the costs associated with the implementation and how can I keep them manageable?

With our relevant experience we can advise you on such questions and guide you through a timely and structured implementation.

We are certified partners of a number of Lease Accounting solutions including Tagetik, Anaplan and SAP. We also offer our own Satriun Lease Management solution for SAP Financial Consolidation.