Link Asset Services (LAS) has today announced the roll-out of LS2, its lease accounting software solution for IFRS 16.
Designed by users for users, the LS2 software addresses every aspect of lease management and lease accounting reporting. With unlimited flexibility for customisation, LS2 includes the option to be treated as a bespoke solution to meet any unique requirements. Combined with this technology is Link’s expertise in helping clients in the process of gathering and storing data, updating processes, contracts, and understanding the tax considerations of the changes.
The new lease accounting standard, IFRS 16, comes into effect on 1 January 2019 and requires businesses to account for their leases under a single accounting treatment. The primary objective of the change is to make it easier for investors, credit rating agencies, and key stakeholders to compare companies and have a clearer picture of off-balance sheet lease obligations.
Virtually every industry uses leasing to obtain access to assets and will feel the impact of IFRS 16. However, the type and volume of assets that they lease, as well as the terms and structures of these lease agreements, will differ significantly.
Steve Gordon, Associate Director, Link Asset Services comments:
“IFRS 16 is just around the corner and businesses are still worryingly ill prepared. This change will require a significant behavioural change in how leases are accounted for as while previously leases might be put away in a dusty draw and forgotten about, they are now central to the accounting process. The sheer volume of leases and lease contracts involved, along with the associated balance sheet implications, means that it could realistically take an organisation 12 months to locate and analyse every lease affected by the new standard.
“Our lease management service and software will help organisations overcome these challenges. An ‘off the shelf bespoke system’ rather than a ‘one size fits none’ product, LS2 is a complete solution for the long-term. The IFRS16 deadline is fast approaching. If they haven’t already, corporates need to start preparing now.”
Link Asset Services offers market-leading treasury and asset finance solutions to international businesses, in both the corporate sector and the public sector. The Gresham Street office is a key part of the Link Group network, which provides 40 closely aligned services to its global client base.