Management Consulting | Technology Consulting | Business Process Management
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About UsBusiness process management and Oracle consultancy, specialised in the Finance and Leasing industry, operating in the intersection of technology and business. We combine deep business and industry insight to develop and implement unique solutions, creating value through innovation and process optimisation:
• Established in 2005 • Global experience in providing solutions to
the finance and leasing sector• Project track record: 35 technology project
multi-country successful Go-Lives• Client focused onsite implementation partner
with offshore capability• Ongoing projects in North America, Europe
and Latin America
Peter Townend
• Oracle Application Consultant and Project Manager
at VIP Apps Consulting with 20 years experience
delivering financial and accounting transformation
initiatives across sectors such as Retail and Investment
Banking, Leasing and Asset Finance and other
Financial Services providers.
• Lead roles on numerous Oracle EBS Financials
projects: project management, consulting, test
planning and execution, accounting design, data
migration and reconciliation.
Achieving IFRS 16 Lease Accounting Compliance Using Oracle Property Manager
• Introduction
• Meeting the challenge - considerations on IFRS16 implementations
• DELIVER project methodology
• Oracle Property Manager Equipment Leases – case study
• Q&A session
• Implementation details
Agenda
IFRS 16 ASC 842 Business Challenges
Systems
TimeProcesses
Data
Collecting, analysis, reconciling and upload a high volume of data, scattered across systems, formats, currencies and languages
Decentralised legacy systems and accounting solutions that may not support customisation to input new lease data and perform the required lease accounting and reporting and disclosure requirements
Time needed to complete a variety of labour intensive tasks, management judgement , business processes optimisation and the system implementation
Business processes need to be redesigned to capture and integrate the relevant lease data and generate compliant financial reporting, considering not only the existing agreements and their comparatives to achieve compliance, but also possible impacts on the company balance sheet.
IFRS16 Implementation Considerations
Gathering the leases Finding the right IT solution
Data migration and testing
Business process improvement
Where are they, separating lease/nonlease components, eg. hidden in service agreements, also low value and short term. Check AP and Rental Cost account for recurring payments
Automation for ongoing accounting and reporting, integration with existing systems, reporting
Allow time and cost, project management and IT compliance, build a cross-functional team and sharing the knowledge
Not one-time compliance activity, its BAU. Establish new processes, how will new leases amendments flow into your GL? System support, audit validation.
Property Manager Equipment Leasing Solution for IFRS 16 / ASC 842Overview
9
• Lease Classification
• Discount Rate• Lessor party• Lease
start/end dates (term)
Lease Header
• ROU/Liability include/exclude
• Currency• Rent Amount
and Frequency• Start/End• Type (Rent,
Service, Parking)
Payment Lines• Renewal or
termination options - include ROU and Liability
• Dates, Amounts, Frequency
• Escalation %
Options
Transaction Values
• Bookings• Accruals• Rental Invoices• Amendments
Create Accounting
ROU/Liability Amortizations
SLA -> GL
Streams & Pricing
Booking & Amendments
Transactions
Reporting
• Description (Inventory Item)
• Model• Install site• Address
Asset Details
Oracle Property Manager Lease Equipment Module Implementation – Case Study
The Project:
Deliver Oracle Property Manager lease contract management system integrated within the clients existing E-Business Suite estate
The Situation:
With a tight deadline to meet new standards coming into force January 2019, objective was to achieve compliance in the financial reporting for their existing and future lease portfolio under new IFRS 16/ASC 842 lease accounting standards
Our Client:
A global medical technology company operating in multiple locations and currencies around the world, selected VIP Apps Consulting to lead their IFRS 16 and ASC 842 lease accounting standards compliance project.
The project delivery was run using our DELIVER project methodology. The DELIVER implementation framework combines an iterative approach to design and develop solutions, enabling faster delivery and maintaining quality. A typical DELIVER implementation begins with a business process and requirements gathering phase to define customer needs which can then be traced through all other phases of the project. The following is a summary of the work performed during each project phase using our DELIVER methodology:
Our Tools: DELIVER Methodology
With the deadline for new standards around the corner, and to ensure that the implementation and adoption of the Oracle solution was successful, our client chose our 90 Days Fast Track IFRS 16 ASC 842 compliance solution:
Project Timeline
• Assessment• Requirements Identification
and Definition• Plan and Roadmap
Development• Solution Design
• Data Mapping and Consolidation
• Process Optimisation• Test iterations • Go Live
Project Management
Change Management & Training
20 days
60 days
10 days
Want to Learn More?
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CONTACT US
VIP Apps Consulting
10th Floor, One Canada SquareCanary Wharf, London
E14 5AA
+44 (0) 20 8123 5508
Management Consulting | Technology Consulting | Business Process Management
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