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Management Consulting | Technology Consulting | Business Process Management
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Management Consulting | Technology Consulting | Business ... · delivering financial and accounting transformation ... Leasing and Asset Finance and other Financial Services providers.

Apr 02, 2020

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Page 1: Management Consulting | Technology Consulting | Business ... · delivering financial and accounting transformation ... Leasing and Asset Finance and other Financial Services providers.

Management Consulting | Technology Consulting | Business Process Management

Page 2: Management Consulting | Technology Consulting | Business ... · delivering financial and accounting transformation ... Leasing and Asset Finance and other Financial Services providers.

Disclaimer

This presentation, including any supporting materials, is owned by VIP Apps Consulting and is for the sole use of the intended VIP Apps Consulting recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of VIP Apps Consulting.

© 2019 VIP Apps Consulting Ltd . Other names may be trademarks or registered trademarks of their respective owners, the use of logos in this presentation does not constitute an affiliation or endorsement of VIP Apps Consulting services.

Page 3: Management Consulting | Technology Consulting | Business ... · delivering financial and accounting transformation ... Leasing and Asset Finance and other Financial Services providers.

About UsBusiness process management and Oracle consultancy, specialised in the Finance and Leasing industry, operating in the intersection of technology and business. We combine deep business and industry insight to develop and implement unique solutions, creating value through innovation and process optimisation:

• Established in 2005 • Global experience in providing solutions to

the finance and leasing sector• Project track record: 35 technology project

multi-country successful Go-Lives• Client focused onsite implementation partner

with offshore capability• Ongoing projects in North America, Europe

and Latin America

Page 4: Management Consulting | Technology Consulting | Business ... · delivering financial and accounting transformation ... Leasing and Asset Finance and other Financial Services providers.

Peter Townend

• Oracle Application Consultant and Project Manager

at VIP Apps Consulting with 20 years experience

delivering financial and accounting transformation

initiatives across sectors such as Retail and Investment

Banking, Leasing and Asset Finance and other

Financial Services providers.

• Lead roles on numerous Oracle EBS Financials

projects: project management, consulting, test

planning and execution, accounting design, data

migration and reconciliation.

Page 5: Management Consulting | Technology Consulting | Business ... · delivering financial and accounting transformation ... Leasing and Asset Finance and other Financial Services providers.

Achieving IFRS 16 Lease Accounting Compliance Using Oracle Property Manager

Page 6: Management Consulting | Technology Consulting | Business ... · delivering financial and accounting transformation ... Leasing and Asset Finance and other Financial Services providers.

• Introduction

• Meeting the challenge - considerations on IFRS16 implementations

• DELIVER project methodology

• Oracle Property Manager Equipment Leases – case study

• Q&A session

• Implementation details

Agenda

Page 7: Management Consulting | Technology Consulting | Business ... · delivering financial and accounting transformation ... Leasing and Asset Finance and other Financial Services providers.

IFRS 16 ASC 842 Business Challenges

Systems

TimeProcesses

Data

Collecting, analysis, reconciling and upload a high volume of data, scattered across systems, formats, currencies and languages

Decentralised legacy systems and accounting solutions that may not support customisation to input new lease data and perform the required lease accounting and reporting and disclosure requirements

Time needed to complete a variety of labour intensive tasks, management judgement , business processes optimisation and the system implementation

Business processes need to be redesigned to capture and integrate the relevant lease data and generate compliant financial reporting, considering not only the existing agreements and their comparatives to achieve compliance, but also possible impacts on the company balance sheet.

Page 8: Management Consulting | Technology Consulting | Business ... · delivering financial and accounting transformation ... Leasing and Asset Finance and other Financial Services providers.

IFRS16 Implementation Considerations

Gathering the leases Finding the right IT solution

Data migration and testing

Business process improvement

Where are they, separating lease/nonlease components, eg. hidden in service agreements, also low value and short term. Check AP and Rental Cost account for recurring payments

Automation for ongoing accounting and reporting, integration with existing systems, reporting

Allow time and cost, project management and IT compliance, build a cross-functional team and sharing the knowledge

Not one-time compliance activity, its BAU. Establish new processes, how will new leases amendments flow into your GL? System support, audit validation.

Page 9: Management Consulting | Technology Consulting | Business ... · delivering financial and accounting transformation ... Leasing and Asset Finance and other Financial Services providers.

Property Manager Equipment Leasing Solution for IFRS 16 / ASC 842Overview

9

• Lease Classification

• Discount Rate• Lessor party• Lease

start/end dates (term)

Lease Header

• ROU/Liability include/exclude

• Currency• Rent Amount

and Frequency• Start/End• Type (Rent,

Service, Parking)

Payment Lines• Renewal or

termination options - include ROU and Liability

• Dates, Amounts, Frequency

• Escalation %

Options

Transaction Values

• Bookings• Accruals• Rental Invoices• Amendments

Create Accounting

ROU/Liability Amortizations

SLA -> GL

Streams & Pricing

Booking & Amendments

Transactions

Reporting

• Description (Inventory Item)

• Model• Install site• Address

Asset Details

Page 10: Management Consulting | Technology Consulting | Business ... · delivering financial and accounting transformation ... Leasing and Asset Finance and other Financial Services providers.

Oracle Property Manager Lease Equipment Module Implementation – Case Study

The Project:

Deliver Oracle Property Manager lease contract management system integrated within the clients existing E-Business Suite estate

The Situation:

With a tight deadline to meet new standards coming into force January 2019, objective was to achieve compliance in the financial reporting for their existing and future lease portfolio under new IFRS 16/ASC 842 lease accounting standards

Our Client:

A global medical technology company operating in multiple locations and currencies around the world, selected VIP Apps Consulting to lead their IFRS 16 and ASC 842 lease accounting standards compliance project.

Page 11: Management Consulting | Technology Consulting | Business ... · delivering financial and accounting transformation ... Leasing and Asset Finance and other Financial Services providers.

The project delivery was run using our DELIVER project methodology. The DELIVER implementation framework combines an iterative approach to design and develop solutions, enabling faster delivery and maintaining quality. A typical DELIVER implementation begins with a business process and requirements gathering phase to define customer needs which can then be traced through all other phases of the project. The following is a summary of the work performed during each project phase using our DELIVER methodology:

Our Tools: DELIVER Methodology

Page 12: Management Consulting | Technology Consulting | Business ... · delivering financial and accounting transformation ... Leasing and Asset Finance and other Financial Services providers.

With the deadline for new standards around the corner, and to ensure that the implementation and adoption of the Oracle solution was successful, our client chose our 90 Days Fast Track IFRS 16 ASC 842 compliance solution:

Project Timeline

• Assessment• Requirements Identification

and Definition• Plan and Roadmap

Development• Solution Design

• Data Mapping and Consolidation

• Process Optimisation• Test iterations • Go Live

Project Management

Change Management & Training

20 days

60 days

10 days

Page 13: Management Consulting | Technology Consulting | Business ... · delivering financial and accounting transformation ... Leasing and Asset Finance and other Financial Services providers.

Want to Learn More?

www.vipappsconsulting.com

Download the case study in our Resources page

Schedule a meeting with one of our Oracle and Financial Services industry experts

Visit our website and check our service portfolio

Page 14: Management Consulting | Technology Consulting | Business ... · delivering financial and accounting transformation ... Leasing and Asset Finance and other Financial Services providers.

CONTACT US

VIP Apps Consulting

10th Floor, One Canada SquareCanary Wharf, London

E14 5AA

+44 (0) 20 8123 5508

[email protected]

Page 15: Management Consulting | Technology Consulting | Business ... · delivering financial and accounting transformation ... Leasing and Asset Finance and other Financial Services providers.

Management Consulting | Technology Consulting | Business Process Management

Thank you