As from April 2022, it will be an international accounting requirement for leases to be reflected on balance sheets. Successful adoption of the IFRS 16 standard will require several components – the most important being collaboration. Where finance and real estate teams work in isolation from each other as well as from counterparts in HR, legal and procurement, they risk missing crucial nuances that may have a major impact. This will be particularly significant if they are attempting to handle complex calculations across separate platforms.
When implementing IFRS 16, from fully comprehending its impact to providing full visibility and enabling collaborative working, spreadsheets are simply not up to the task. Specialised systems will be required to handle and automate calculations that are otherwise time consuming and error prone.
This infographic demonstrates the benefits and importance of departmental collaboration showing how, by bringing departments together with one common approach, business leaders can meet the requirements and reap the benefits.