New lease accounting standards are causing companies to re-engineer the way they manage and report on lease agreements for compliance and ongoing lease management.
The need to gather and analyse the relevant data to comply with the new accounting standards has created significant challenges for many organisations.
PwC has created a process supported by a suite of tools that makes collection, analysis and reporting of lease data much easier and more streamlined. This process could help improve the way you collect data and the insights you receive from it going forward. The basis of PwC's approach forms an iterative feedback loop, combining advanced technology and PwC's deep accounting expertise.
Here's how it works.
First, extraction of lease terms and clauses is automated through advanced technologies combined with a proprietary least rule set and term inventory developed by our leasing professionals.
Next, an iterative review process helps cleanse data for eventual migration to your existing or new lease management systems. Then PwC's proprietary calculation engine helps quantify the impact of the new standards for transition years based on extracted least cash flows.
We also develop reporting dashboards that deliver analytical insights to management and highlight potential improvement opportunities.
The benefits are clear: accelerated extraction of lease terms; centralised repository of relevant data for future use in your leasing systems; interactive reporting providing clarity and enabling insight into your lease portfolio for better decision-making.
PwC helps you bring the elements together with a solution that addresses the transitional challenges, while also managing the technical requirements of the new lease accounting standards.
For more information request a demonstration of our tools or visit www.pwc.co.uk/ifrs16