Innervision & Travis Perkins Plc Announce IFRS 16 Lease Accounting Partnership
Press Release: Wednesday, 6th December 2017 – 3.30pm (GMT)
Innervision Management Ltd, today announces that Travis Perkins, the UK’s leading builders’ merchants and home improvement retailer has selected LOIS Lease Accounting (LLA) as its favoured solution for implementing the new lease accounting standard IFRS 16.
The 3-year agreement will see Innervision’s LLA solution deployed across the Group, enabling Travis Perkins to undertake a complex transition to IFRS 16 as well as managing its large portfolio of property, equipment and vehicle leases on an on-going basis.
Included within its core functionality LLA gives Travis Perkins the ability to record and maintain significant numbers of low value lease contracts which are exempted from the IFRS 16 standards as well as allowing the centralisation of all higher value, non-exempted lease agreements, enabling accounting reports and journal entries to be generated for the entire lease portfolio.
Announced by the International Accounting Standards Board (IASB) in January 2016, the new financial reporting standard for leases, IFRS 16 will come into effect on 1st January 2019 and will require lessees to recognise virtually all leases as assets and liabilities; bringing added transparency to the balance sheet. These changes will significantly impact many global corporates’ financial statements and will impact numerous commonly used financial ratios and performance metrics.
David Saunderson, Travis Perkins’ Group Financial Controller commented, “We were extremely impressed with Innervision’s flexible approach to providing a comprehensive lease accounting software solution. Besides core IFRS 16 functionality we need a solution that supports additional requirements such as IAS 17 accounting as well as the ability to centralise data for a large portfolio of exempted leases – Innervision proved its solution accommodates these requirements, which was an important factor in our decision to select Innervision as our lease accounting technology partner.”
Innervision’s Director Martin Kennard Added: “We are delighted to welcome Travis Perkins, such a well-recognised and leading brand into our growing portfolio of LLA users. This partnership demonstrates Innervision’s commitment to supporting large corporates in their transition to the new standards. We look forward to assisting Travis Perkins as it continues its journey towards full IFRS 16 compliance. We have every confidence that this will be a successful partnership.”
About Travis Perkins:
Travis Perkins plc is the UK’s leading supplier of materials to the building and construction and home improvement markets. The Group operates 20+ businesses from over 2,000 sites across the UK and employs approximately 28,000 people. With a proud heritage that can be traced back over 200 years, the Group’s employees are continuing that tradition by working with its customers to build better, together.
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 web-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 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.
With its comprehensive and intuitive accounting features, alongside a straightforward implementation process, competitive pricing, extensive training programme and expert support, LLA is the perfect tool for any implementation project.
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.
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