Engineering Innovation In
Digital Retail & Fashion
How to manage leasing contracts in compliance with the new IFRS16 accounting model.
Approach & Solution
A project in collaboration with one of the world's leaders in the management of restaurant services, with a global presence and over 50,000 employees, which runs thousands of stores and operates in airports, motorways and railway stations all over the world. Introduction of the new IFRS16 accounting standard, issued by the International Accounting Standards Board (IASB) and applicable to all financial leasing contracts, provides a single model for all leasing contracts (operational and financial) with the aim of bringing out highlighting activities related to leases on the financial statement and with the lessee's obligation of reporting the assets and liabilities inherent in a transaction on the balance sheet.
With our experts we implemented a project based on SAP Real Estate - FLEX in the RE-FX-LA component, which involved 7 companies of the group. Our intervention made it possible to allow management of the life cycle of a contract (not just leasing), including the offer and closing phase, management of conditions, services and documentation, approbative workflows, recording in accounting, management of the payment cycle, evaluation of the contract, determination of the right of use of the asset (ROU Asset) and accounting in the balance sheet.
Meeting all the requirements of the new IFRS16 model
Total integration with the existing SAP ERP system
Minimum maintenance costs
Engineering Industry & Services Business Unit Enterprise Excellence Center