Oracle Cloud's IFRS 16 solution
As of Jan. 1, 2019, the new accounting standard IFRS 16 is effective. This new leasing standard requires leases to be valued on the balance sheet. IFRS 16 provides uniformity and transparency, but also requires centralization of all required data. Oracle also now has a solution to ensure a smooth transition to IFRS 16. Below we take you through this solution for lease accounting.
IFRS 16 in the cloud
Oracle's IFRS 16 solution is based on Oracle Financial Consolidation & Close Cloud Services (FCCS); Oracle's consolidation and reporting solution. With this, Oracle is opting for a truly "native" cloud solution. Cloud solutions have the advantage that they can be implemented quickly with a relatively limited load on IT resources. It is also easy to allow the application to grow with usage in your organization without having to make large investments in advance.
Central storage of all IFRS 16 data
The main function of Oracle's solution is to create one central data collection of all lease-related information. Whether that is lease contracts or details of all kinds of assets; you can easily and securely collect it from different sources and store it centrally. Based on this data, you can run both simple and also complex calculations (e.g. amortizations, "right-of-use", etc.) within the solution.
Reporting, analysis and more
Oracle's solution includes many features to analyze and report your lease accounting data. These capabilities are already a standard part of the cloud platform and can therefore also be used within this module. Since Excel is still the trusted tool for many controllers anyway, there is also an extensive Excel add-in present in the platform. Finally, there are workflow capabilities to keep your processes running smoothly. If you want to get a better idea of the capabilities and user interface of Oracle FCCS, you should take a look at our recent FCCS webinar. The video below gives more insight into the concept of the solution.
All in a row
With Oracle's solution comes a very complete solution for IFRS 16. The underlying cloud platform offers many features from data integration to dashboarding. Implementing a cloud solution also puts less strain on resources and can be done relatively quickly. The latter can be a key advantage with the Jan. 1, 2019 deadline in mind.
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