April 2nd, 2019 (Sydney): LeaseAccelerator, the pioneer in the Enterprise Lease Accounting software market, has published a 90-Day Countdown Checklist for Australia companies preparing for the new lease accounting standards, AASB 16.
One of the biggest accounting changes ever, the new AASB 16 standards will see over $100 billion in operating leases transfer onto Australian corporate balance sheets this year. The initial deadline arrives in just three months on 1/7/2019.
Australian listed companies will have to finalise accounting policies, lease administration and transition approaches, covering activities including:
- Validation, cleansing and enrichment of leasing data
- Testing, migration and deployment of lease accounting systems
- Staffing, training and enablement of new business processes
- Reviews, updates and approvals of financial controls
Most importantly, companies will have to operationalise their record-to-report processes for lease accounting, to ensure that they can satisfy the new presentation and disclosure requirements.
Recent studies from the top auditing firms suggest that the majority of companies are behind schedule on implementing the standard. Many are still implementing new systems, updating business processes and hiring additional staff. It is likely that companies will have to use manual workarounds, spreadsheet tracking and external consultants to fill the gaps until the appropriate people, processes and systems are put in place.
“Given the complexity of the new lease accounting standards, it is not surprising that many companies feel they are behind. The biggest issue that we are hearing from our global customer base is the challenge of managing a dynamic lease portfolio across its lifecycle to ensure sustained compliance. This capability is at the core LeaseAccelerator’s solution and is the biggest reason why so many companies are choosing us,” said Michelle Laybutt, LeaseAccelerator VP Solution Consulting ANZ and South East Asia.
The 90-Day Countdown Checklist can be downloaded here – https://explore.leaseaccelerator.com/checklist-countdown-to-ifrs-16/?utm_source=pr&utm_medium=prwire&utm_campaign=90daysApr1
LeaseAccelerator offers the market-leading software-as-a-service (SaaS) for Enterprise Lease Accounting, proven to be the simplest, fastest and easiest path to compliance with the new IFRS standards. Using LeaseAccelerator’s unique Global Lease Accounting Engine, customers can apply the new standards to all types of leases – real estate, equipment and embedded – at the asset level as specified by FASB and IASB. The company’s ecosystem of certified, global partners offers a variety of guaranteed turn-key solutions. On average, the firm’s Sourcing and Management applications drive savings of 17 percent with smarter procurement and end-of-term management – compliance plus ROI. Learn more at http://www.leaseaccelerator.com.au.
For more information and interviews with Michelle Laybutt:
Kristin Westlake, The Continuum Partners
+61 416 219 358