Invoke, a benchmark provider of financial and tax processing software, announces the certification of its Invoke FAS IFRS 16 solution by a leading Big Four accounting firm. The standard configuration of the solution ensures full compliance of generated consolidation adjustments.
Issued in 2016 by IASB (International Accounting Standards Board), the IFRS 16 standard aims to bring more transparency to leases in companies’ financial analyses. It will force companies to report a debt ensuing from a lease as a liability on their balance sheet, while the right to use a leased item will be recognised as an asset. The new standard will become mandatory for financial years ended on 1 January 2019.
To enable their clients to meet these new compliance requirements in a fast and future-proof manner, Invoke has extended its flagship software range, Invoke FAS, to address new issues resulting from the international financial reporting standard IFRS 16.
A configuration that complies with international standards
Invoke FAS IFRS 16 was designed specifically to address the requirements of this standard, and ensure full compliance for users in their accounting and consolidation adjustments.
The calculation method and configuration of the solutions have been approved by a leading audit firm, one of the Big Four, to guarantee their compliance with the new standard. A comprehensive battery of test scenarios was set up to cover the entire field of application of the standard, with a particular focus on dealing with complex cases – accounting for transition methods, sub-leasing, contract options, indices, changes in the course of a contract, etc.
After an extensive assessment, the appointed Big Four audit firm was able to confirm that FAS IFRS 16 had successfully completed all the test scenarios, thereby validating the full compliance of all consolidation adjustment entries generated.
This conclusive trial showed that there were no errors, omissions or inaccuracies in the calculations performed by the Invoke FAS IFRS 16 tool, which makes Invoke the first software developer to receive technical and functional certification from an internationally renowned audit firm.
« This certification means that our clients get full compliance of all their consolidation adjustments. With FAS IFRS 16, they can count on the quality of the data and focus on assessing the impact of the standard on their consolidated accounts,» says Adeline Arana, Reporting & Consolidation Product Manager.
A strategic business user-oriented solution
Based on Invoke’s unified reporting platform, Invoke FAS IFRS 16 allows more agile management of operating leases and finance leases. The solution goes further than a mere inventory of contracts and automatic calculation of their eligibility to the standard. It also enables users to industrialise their adjustment processes by means of a standard workflow of alerts on contracts. They have immediate access to the necessary key indicators to make financial decisions through simulations.
Throughout the process, the solution gives them full traceability of all data, in just one click. After being processed, data can be exported to any consolidation tool, compatible software or ERP on the market.
