Companies need to prepare for the new IFRS 16 accounting standards by adopting the right tools and processes.
Waltham, Mass. (PRWEB) June 27, 2016
B4 Consulting®, helping real estate companies grow with innovative software, services and support, today announced its support of the SAP® Real Estate Management application, designed to provide full compliance with the new International Financial Records Standard 16 (IFRS 16). IFRS 16 is an accounting standard that establishes principles for the recognition, measurement, presentation and disclosure of leases to ensure that lessees and lessors provide relevant information that faithfully represents those transactions. The B4 Consulting Real Estate practice is supporting customers to help ensure that their SAP Real Estate Management application is optimized to support the new accounting rules.
“Companies need to prepare for the new IFRS 16 accounting standards by adopting the right tools and processes for proper lease management and for reporting compliance,” said Klaus Schottenhamel, president and CEO of B4 Consulting. While the new leasing standards do not go into effect until January 2019, companies can begin reporting in January 2017 and communicate expected changes with stakeholders.
With the new accounting standards, customers will need to consolidate all lease contracts data into a single repository, have the ability to quickly access legal, financial and business validations, and gain better visibility into lease exposure for improved strategic planning and decision making. “SAP Real Estate Management addresses these requirements, and our team has the expertise to help customers using the software quickly realize this new functionality and become fully IFRS compliant,” continued Schottenhamel.
SAP Real Estate Management Mitigates Risk on IFRS Non-compliance
The new IFRS accounting standards define how organizations must account for leases. These accounting standards stipulate most leases must be reported on each company’s balance sheet, increasing the risk of regulatory noncompliance and inaccurate statutory reporting.
SAP Real Estate Management provides a single point of entry for collection and validation of lease contract data. It performs valuation calculations and generates the financial postings derived from these calculations. Streamlining cost-effective compliance, it provides highly flexible and extendable forms to collect industry- or business-specific attributes while enabling heightened collaboration throughout the data collection process.
About B4 Consulting, Inc.
B4 Consulting integrates business processes and technologies globally for customers who want to transform their businesses with innovative on-premise and cloud-based solutions. Our team of solution architects integrates these solutions with leading systems, such as SAP solutions, to enable business performance excellence and improved profitability. Partnering with customers throughout the U.S. and Canada, B4 Consulting has the largest practice in North America dedicated to the engineering, construction, real estate, equipment management, field services and professional services industries.http://www.b4-consulting.com. Follow Us on Twitter: http://www.twitter.com/b4consulting
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