(Böblingen) IFRS 15 & 16 are a new generation of standards that are leading to fundamental changes in accounting.
In accordance with the IFRS 15 standard, as of 28th May 2014, the most significant regulations in force to date on the reporting of sales revenues from customer contracts were merged into a new standard (IAS 11, IAS 18, IFRIC 13, IFRIC15, IFRIC 18 & SIC-31).
In general, the new standard does not lead to a change in the revenues themselves, but, if necessary, to a changed realisation date. IRFS 15 permits / calls for the dismantling of contractual obligations into individually usable parts, for example, a mobile phone contract that is bundled with a mobile device is required to list the contract period as separate item, which, in accordance with IFRS 15, is to be realised completely upon availability.
The described method decouples sales realisation and invoicing, thereby placing new demands on the IT-side processing and recording of performance obligations.
In January 2016, a new regulation - IFRS 16 - was intro-duced (replacing IAS 17 and IFRIC 4) for the reporting of leasing conditions, which applies to reporting periods beginning after January 1st 2019. The standard includes important changes, e.g. the requirement that leasing agreements are to be recorded on balance sheets by the lease-taker as an asset, as part of the so-called "right-of-use approach" or also the difference between financing and operating lease contracts for the lessee (as required by IAS 17).
To support the new business process for accounting, the LCM Product Suite offers suitable assistance to ensure efficiency and security.
- LCM Integration Gateway: Integration with financial / accounting data, as well as active support for as-signing values to existing contracts
- IFRS 15: Direct support for the 5-step process to determine performance obligations and transaction prices in your contract portfolio
- IFRS 16: Guided valuation and classification model for all contractual leases
- Reporting: Accessibility at all times - clear value overview of your contracts for your balance sheet
Interested? Please contact us!
Should you require further information, the LCM Product Management team would be delighted to help.