{"id":34004,"date":"2021-10-01T07:57:23","date_gmt":"2021-09-30T21:57:23","guid":{"rendered":"https:\/\/www.mrisoftware.com\/au\/?p=34004"},"modified":"2022-04-01T04:08:37","modified_gmt":"2022-03-31T18:08:37","slug":"ai-partners-with-accounting-expertise-to-maintain-ifrs-16-compliance","status":"publish","type":"post","link":"https:\/\/www.mrisoftware.com\/au\/blog\/ai-partners-with-accounting-expertise-to-maintain-ifrs-16-compliance\/","title":{"rendered":"AI partners with accounting expertise to maintain IFRS 16 compliance"},"content":{"rendered":"<p>The International Financial Reporting Standard (IFRS 16) came into effect in January 2019, significantly changing lease accounting practices by requiring everything from a real estate lease to a car lease to a fax machine lease to be holistically evaluated, categorised, and placed on the balance sheet appropriately. To combat this change, many organisations adapted technology solutions to help with the heavy lifting.<\/p>\n<p>Enlisting a technology partner to extract data quickly and accurately into a single repository accelerates the transition and facilitates efficient lease management in the long run. Let\u2019s look at a practical example to see how deploying artificial intelligence (AI) technology can simplify the IFRS 16 shift.<\/p>\n<p>With just seven months to go before the IFRS 16 reporting 2019 deadline, a prominent retailer had a tight timeline to implement a lease accounting solution. <a href=\"https:\/\/www.mrisoftware.com\/au\/products\/contract-intelligence\/\" target=\"_blank\" rel=\"noopener\">MRI Contract Intelligence<\/a>, powered by Leverton AI, was engaged alongside a leading accounting firm to support the 500+ lease IFRS 16 transition. The whole process had been completed ahead of schedule in preparation for the new leasing standards.<\/p>\n<p>Below is an outline of the process from start to finish that highlights the significant benefits of AI coupled with accounting expertise for lease accounting projects.<\/p>\n<h2 style=\"font-size: 28px;\"><strong>Phase 1: Determining population and importing of data<\/strong><\/h2>\n<ul>\n<li>The accounting partner provided guidance around the relevant lease population for the transition project.<\/li>\n<li>MRI Contract Intelligence helped identify problematic or missing contracts.<\/li>\n<li>All documents were classified automatically, and Optical Character Recognition (OCR) technology created fully searchable documents regardless of document quality.<\/li>\n<\/ul>\n<h2 style=\"font-size: 28px;\"><strong>Phase 2: Capturing the right data<\/strong><\/h2>\n<ul>\n<li>MRI Contract Intelligence extracted the appropriate IFRS 16 data set co-developed between LevertonMRI, technical accounting experts, and the client<\/li>\n<li>The process ensured that both IFRS 16-relevant data points and those that would be useful from an ongoing lease management perspective were captured swiftly and accurately.<\/li>\n<\/ul>\n<h2 style=\"font-size: 28px;\"><strong>Phase 3: Data extraction and validation<\/strong><\/h2>\n<ul>\n<li>MRI Contract Intelligence used its market-leading AI technology coupled with two layers of quality assurance to provide weekly batch delivery of data.<\/li>\n<li>Sample quality reviews were performed by the accounting team, focusing on high risk and high value assets.<\/li>\n<li>The result was an accurate, auditable data set.<\/li>\n<\/ul>\n<h2 style=\"font-size: 28px;\"><strong>Phase 4: Ongoing management and auditor communication<\/strong><\/h2>\n<ul>\n<li>MRI Contract Intelligence offered a versatile solution, expertly positioned to deal with ongoing lease agreement updates, changes to IFRS 16 data points, and broader real estate management needs.<\/li>\n<li>The AI technology streamlined and simplified reporting and audit requirements through transparent, auditable data.<\/li>\n<\/ul>\n<p>MRI\u2019s AI-powered lease abstraction solution allows the automated processing of assets and all real estate leases. With a pre-built custom IFRS 16 extraction template it can interface the information into your database. MRI Contract Intelligence can also be partnered with accounting systems such as <a href=\"https:\/\/www.mrisoftware.com\/au\/products\/prolease\/\" target=\"_blank\" rel=\"noopener\">ProLease<\/a> and <a href=\"https:\/\/www.mrisoftware.com\/au\/products\/horizon-cre\/\" target=\"_blank\" rel=\"noopener\">MRI Horizon<\/a> to assist in this extraction process. The system will also provide highly structured data and meet the ongoing compliance standards of the new regulations.<\/p>\n<p><a href=\"https:\/\/www.mrisoftware.com\/au\/products\/contract-intelligence\/\" target=\"_blank\" rel=\"noopener\">Click here<\/a> If you would like to learn more about how MRI Contract Intelligence can support your business.<\/p>\n<table>\n<tbody>\n<tr>\n<td style=\"background-color: #faa41a; border-radius: 20px; color: #ffffff; font-family: sans-serif; font-size: 16px; font-weight: bold; line-height: 50px; text-align: center; width: 200px;\"><a style=\"color: #ffffff; text-align: center; text-decoration: none;\" href=\"https:\/\/www.mrisoftware.com\/au\/products\/contract-intelligence\/?&amp;utm_source=Blog&amp;utm_medium=Website&amp;utm_campaign=Lead%20Queue%20-%20Lead%20Queue\" target=\"_blank\" rel=\"noopener\">Book a demo<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>The International Financial Reporting Standard (IFRS 16) came into effect in January 2019, significantly changing lease accounting practices by requiring everything from a real estate lease to a car lease to a fax machine lease to be holistically eva&hellip;<\/p>\n","protected":false},"author":116,"featured_media":34008,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[133,149],"tags":[],"class_list":["post-34004","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-property-management-solutions","category-lease-management"],"acf":[],"contentshake_article_id":"","_links":{"self":[{"href":"https:\/\/www.mrisoftware.com\/au\/wp-json\/wp\/v2\/posts\/34004","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mrisoftware.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mrisoftware.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mrisoftware.com\/au\/wp-json\/wp\/v2\/users\/116"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mrisoftware.com\/au\/wp-json\/wp\/v2\/comments?post=34004"}],"version-history":[{"count":0,"href":"https:\/\/www.mrisoftware.com\/au\/wp-json\/wp\/v2\/posts\/34004\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mrisoftware.com\/au\/wp-json\/wp\/v2\/media\/34008"}],"wp:attachment":[{"href":"https:\/\/www.mrisoftware.com\/au\/wp-json\/wp\/v2\/media?parent=34004"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mrisoftware.com\/au\/wp-json\/wp\/v2\/categories?post=34004"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mrisoftware.com\/au\/wp-json\/wp\/v2\/tags?post=34004"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}