In response to the “Accounting Standards for Leases” published on September 13, 2024, Pro-Ship Corporation has begun offering “Policy Organizing Support Content” that can be used to organize business requirements before system implementation.
Since the new lease accounting standards are equivalent to IFRS 16, which began to be applied in 2019, past cases of IFRS 16 compliance implemented by IFRS-adopting companies are very useful references when preparing to apply the new lease accounting standards.
We have supported over 100 clients in complying with IFRS16. One of the characteristics of projects that caused problems, such as schedule delays, was that the system implementation was carried out without sufficient policy arrangements, such as clarifying accounting issues and formulating new business processes, which are the first steps to system implementation. If the system implementation is carried out without sufficient internal policy arrangements, unnecessary rework such as redoing migration work and reconsidering accounting entries and business flows will occur in the process of system adaptation. Therefore, it is no exaggeration to say that the success or failure of applying the new lease accounting standards depends on how thoroughly and smoothly the policy arrangements can be carried out.
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As you can see, this is a very important phase of policy preparation, and while there are ways to utilize external advisors, there are also many companies that proceed with their own considerations. Therefore, we have released content to support self-help, leveraging our past experience, to support companies that proceed with policy preparation on their own.
SOURCE: PRTimes
