Move to ifrs 16

Move to IFRS 16

IFRS 16 became effective on 1 January 2019 and it could cost your company in several different ways if you’re not prepared. There is still time to act, but very little to spare…

And don’t be fooled into thinking this is just an ‘accounting exercise’ to be dealt with by junior members of your team: Non-compliance could affect, or even breach, current funding agreements for lines of credit, loans or investments, for example, and it could hit future funding through hindering your ability to secure finance, such as credit, loans or investments, in the future.

Existing and potential customers will often base their view of your organisation on your balance sheet so non-compliance with IFRS 16 could seriously affect your reputation and how they view you compared to your competitors, as well as potentially prompting awkward conversations with groups such as auditors, market analysts, journalists and your own board.

Earlier this year The Grocer predicted that “companies in the UK will be disproportionately affected, due to the UK typically having the longest lease terms at five to 10 years…driven by non-cancellable long-dated property leases…”, and particularly those in the airline, retail and travel & leisure industries are expected to be significantly affected by the new leasing requirements.

The deadline may be fast approaching but it’s not too late to act and the Opal Wave IFRS 16 solution for SAP BPC reduces time, effort and worry from your preparations for this landmark measure, as it contains a standard IFRS 16 template, comprising all the elements you’ll need to create and maintain information for the required reporting, including the necessary administration and calculation functions.

Our solution has been thoroughly tested against the guidance model developed by top accountancy practice Deloitte, which incorporates worked examples and reference data for purposes such as leases.

Don’t delay – contact us for a demo today and find out how we can help you to be ready for IFRS 16.