For a smoother transition for your business
Implementing the new IFRS 16 lease accounting standard requires fundamentally changing the calculation methods applied within your business. The financial impact of the standard can be complex to quantify and involves detailed calculations and financial modelling, particularly for companies with large lease portfolios.
In order to assist our clients with the transition, one of the solutions that we’ve developed at PwC is a tailored and transparent tool that can be used to evaluate the transition day (‘Day 1’) impact as well as calculate ongoing monthly financial journals. Once customised and tested, it can be implemented in a matter of days, and doesn’t require complex IT infrastructure and therefore the onerous procurement which often accompanies such initiatives.
40+ data points are required for each lease to be managed and to calculate the IFRS 16 results.
Complex calculations are necessary for leases with fluctuating periodic rent, ongoing changes in likelihood to exercise extensions or termination options, different lease or company reporting currencies...etc.
Managing lease data and their calculations, and tracking post-transition lease modifications becomes complex when dealing with more than 25 leases.
Basic spreadsheet models created for individual leases present a greater risk of input error, and require significantly more manual time and effort to aggregate balances, report consistently, and perform audits or verifications.
Implemented with ease
Once engaged, we usually deliver a tailored tool within 4 weeks, allowing for training and acceptance testing.
Total transparency and control
You have complete control and customisation opportunities. Our solution allows users to delve into the calculations if needed. You don’t have to fear the “black box” problem.
Excel-based outputs are easy to upload into your accounting system, and can be customised for efficiency of postings.
Comparative cost efficiency
System alternatives are orders of magnitude more expensive with less functionality, and usually require ongoing annual licence payments. Our solution will be provided to you with no ongoing licence payments.
Outputs IFRS 16 monthly journals
Supports all three transition methods
Tailored to fit your specific business needs
No associated annual licensing fees
In depth analysis of your lease portfolio
All-in-one single solution to hold your lease register and calculate financial impact
Supports multiple entities and currencies as well as group reporting conversion