Business is all about buying and selling, right? For the most part, yes. But for many companies, it’s also about leasing. For companies in a diverse range of industries, leases make up a major part of their operating expenses. These companies lease office and retail space, vehicles, equipment, machinery, and a myriad of other items essential to their operations.
Accounting for those leases is a major responsibility for the finance organizations at these companies. As every finance professional knows, the difference of a few percent here or there, in a lease payment or a tax deduction, can have a significant impact on profitability. So the introduction of the new IFRS 16 accounting standard under International Financial Reporting Standards (IFRS) could have major consequences for any company that depends on leased assets to function.
With the help of IBM Planning Analytics application for IFRS/16, compliance tasks can be performed more efficiently, leaving your finance and accounting teams the time and the accurate data—to drive smarter, more informed decision making.