New report identifies DAX companies whose balance sheets will be most impacted by the new IFRS 16 lease accounting standards

FRANKFURT – 5 March 2019 – LeaseAccelerator, the leader in global Enterprise Lease Accounting software market, announced today the release of its new study on Which DAX Companies are Most Impacted by IFRS 16. The DAX, Germany’s best-known blue chip index managed by Deutsche Borse, tracks the performance of 30 major companies trading on the Frankfurt Stock Exchange.

On 1 January 2019, a new set of lease accounting standards began to take effect, requiring companies to transfer an estimated €3 trillion of operating leases onto corporate balance sheets as right-of-use assets and corresponding lease liabilities. Historically, only a limited set of information about operating leases has been reported in the footnotes of annual financial reports. However, under the new IFRS 16 standards, companies will be required to add new line items to the balance sheet for these operating leases. As a result, key financial metrics, such as return on assets, EBITDA and the quick ratio will be impacted by these accounting changes. The new report from LeaseAccelerator will help CFOs, ratings agencies, institutional investors, and other users of financial statements to gain an understanding of the assets and liabilities that will be moving onto the balance sheet.

“The DAX index consists of some of the largest companies in the world, many of which have lease portfolios comprising a diverse mix of assets decentralized in plants, warehouses, stores, and data centers throughout the world,” said Michael Keeler, CEO of LeaseAccelerator. “In the audit process for a large company, the size and complexity of the lease portfolio correlates directly to materiality and risk of non-compliance to the new lease accounting standards. The 30 DAX firms in this report face a difficult challenge in capturing the changes to each lease around the world within the monthly close period” continued Keeler.

“The completeness, accuracy and timeliness of their financial reporting requires disciplined monthly operational execution to collect and account for the detailed changes in the portfolio,” said Juergen Mueller, Head of DACH and Central Europe for LeaseAccelerator. “To avoid any delays to their close, CFOs are now investing aggressively in automating the day-to-day manual steps required to update their lease data and generate compliant financial reporting.”

The implementation deadlines for the new standards started in January 2019.

The German and English versions of report are accessible at:
https://www.leaseaccounting.com/ifrs-16-germany

Data was sourced from information provided in the company’s most recent annual financial reports.

About LeaseAccelerator:
LeaseAccelerator offersthe market-leading software-as-a-service (SaaS) for Enterprise Lease Accounting, proven to be the simplest, fastest, easiest path to compliance with the new IFRS 16 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 the 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. Visit http://www.leaseaccelerator.com/.

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