The IFRS - International Financial Reporting Standard - places high demands on accounting and costing systems. The standards IFRS 15 (Revenues from contracts with customers) and IFRS 16 (Leases) will be revised in 2018 and 2019, respectively.
As of May 28th 2014, the new standard summarises the significant regulations applicable up to that time with respect to the presentation of revenues from customer contracts. In accordance with IFRS 15, as of January 1st 2018, companies are required to show revenues differently in their accounts if they offer products and the associated services in a package (multi-component contracts). This allows/requires the separation of contractually regulated service obligations into parts that can be used individually. For example, an end device delivered with a mobile phone contract, despite bundling/coupling to the contract term, becomes a separate line item that is to be fully realised, as of its usability. The procedure illustrated here decouples revenue recognition and invoicing, thereby placing new demands on IT-related processing and the recording of service obligations.
In January 2016, a new standard (replacing IAS 17 and IFRIC 4) for the accounting of lease agreements was published, which applies to reporting periods beginning after 1st January 2019. The standard contains important changes, such as the requirement to recognise leases as an asset in the lessee's balance sheet as part of the "Right-of-Use Approach" or the no longer applicable distinction between finance and operating leases for the lessee, such as rental agreements, equipment, copiers, office space or company cars. All existing leases must be reviewed and revalued and the previously undocumented data must be recorded for accounting purposes.
Similar to the provisions of IAS 17 for finance leases, lease liabilities are amortised on a financial basis over the term of the lease agreement. While the right of use is amortised according to plan, this results in higher expenses at the beginning of the lease term. That is to say:
In order to support the newly designed business processes in accounting and inventory in accordance with IFRS standards15/16, the TQG businessApp platform® offers the appropriate "modules" with the IFRS App to ensure an audit-compliant process, with efficiency and security: