Innervision & House of Fraser Announce Contract Renewal and IFRS 16 Partnership
London, UK — Thursday, 7th June 2018 – 2 pm (BST) — Innervision Management Ltd, an industry leading provider of lease management services and SaaS (software as a service) lease accounting software, are today pleased to announce a new lease management and SaaS lease accounting agreement with House of Fraser (HoF).
House of Fraser has been a valued Innervision customer since 2010 and under the new agreement, Innervision will continue to deliver lease management services for a further 12 months. In addition to the provision of lease management and associated services including lease analysis, new lease arrangement and lease expiry; the new agreement will see Innervision’s market leading solution LOIS Lease Accounting (LLA) deployed across the group as HoF embarks on a potential complex transition to the new lease accounting standard – IFRS 16.
LLA will become a core component to House of Fraser’s IFRS 16 compliance strategy and will allow them to account for a diverse portfolio of property, fleet, and IT related assets in accordance to the new accounting guidelines. Transitioning to IFRS 16 is simplified by Innervision’s robust and agile software which creates all the required amortisations schedules, accounting journals and reporting requirements.
The new lease accounting standards, which come into effect on 1st January 2019, require companies (lessees) to fundamentally change the way they account for their leases bringing practically all leases onto the balance sheet, and recognising a right of use asset and a lease liability.
These new standards are set to have substantial implications for all companies that lease and will require an unprecedented amount of work to successfully implement. It is important that companies understand the challenges presented by IFRS 16 and ASC 842 and do not underestimate the complexities associated with achieving compliance.
Innervision’s Director Martin Kennard commented: “For over 8 years Innervision has worked closely with the team at HoF to provide a diverse range of lease management services. We are delighted to announce this contract renewal and are pleased that HoF have selected Innervision’s LLA software for implementing the new accounting standard. We look forward to working with the team at HoF to continue to evolve the provision of lease management services, whilst also supporting a successful transition to IFRS 16”.
House of Fraser’s Senior Accountant added, “This contract renewal builds upon our long-standing relationship with Innervision and secures the level of service performance and support that we require in maximising the potential of an extensive lease portfolio. With the introduction of the new lease accounting standards, it was a logical step for HoF to extend our relationship with Innervision beyond lease management to include the procurement of its market leading solution LLA”.
About House of Fraser:
House of Fraser is a leading, national premium department store group in the UK and Ireland trading principally under the iconic House of Fraser brand name, with a rich history and heritage that stretches back over 160 years.
Headquartered in London, England, the Group operates a portfolio of 59 stores across the United Kingdom and Ireland, employees over 10,000 people and generates revenues in excess of 1.1 Billion.
Innervision is a leasing consultancy and specialist lease service supplier, providing Lease Accounting Solutions and Lease Portfolio Management services to global corporate lessees since 1992.
Innervision’s lease accounting solution, LLA, is a flexible cloud-based application that supports both current IAS 17 lease accounting standards as well as the new IFRS 16 & FASB ASC 842; LLA caters for all lease asset types, including equipment, fleet and property.
LLA will interface with most popular ERP systems such as SAP, Oracle and other general ledger solutions, as well as common property and fleet management engines.
LLA produces all the accounting information required to complete the financial statements; including income statement, cash flow and balance sheet. The system will also run amortisation schedules, journal entries and disclosure summaries.
For further information about Innervision’s lease accounting solution and leasing services, visit: http://www.innervision.co.uk/
Get Up To Speed With IFRS 16
If you are looking to learn more about the changes to lease accounting and the impact that IFRS 16 will have on your organisation. Then take a look at this useful download that will show you everything you need to know at a glance.
Access your free guide by clicking on the link below: