London Security plc to Achieve IFRS 16 Compliance with Innervision’s LOIS Lease Accounting Solution
London, United Kingdom — 4th October 2018 — 3:45 pm (BST) — In a statement detailing a new agreement, Innervision Management Limited confirmed that London Security plc, a leader in Europe’s fire security industry is to utilise its purpose-built lease accounting solution - LOIS Lease Accounting (“LLA”) as it undertakes its transition to IFRS 16 compliance.
Outlining the decision, London Security’s Financial Controller, Simon Coates, reported that “Adoption of IFRS 16 is a key objective for London Security ahead of the January 2019 deadline. Having completed our initial planning and evaluation of alternatives we selected Innervision’s LLA thanks to the solutions functionality and ability of Innervision’s team to support the implementation process quickly and efficiently working in collaboration with our internal project team.”
A new client to Innervision, this 12-month agreement will see London Security utilise LLA to report its lease portfolio across its operations in the UK and mainland Europe. As well as finance type leases the company leases various properties and vehicles under non-cancellable operating leases. As part of the exercise, London Security’s complete lease portfolio will be uploaded to LLA and each lease will be classified according to the new standard to recognise the right of use asset and lease liabilities. Additionally, the system will generate a wide range of accounting and financial reports including all journal entries for the General Ledger.
Innervision’s Director Martin Kennard added: ”An internationally renowned company such as London Security is another very welcome client to our growing customer portfolio. All companies throughout the world should be well beyond the planning stage in their implementation of the new lease accounting standards and London Security is a great example of one such operation that is well prepared for the transition to, and compliance with IFRS 16. We at Innervision are geared up to assist where necessary to ensure a seamless adoption by the deadline of 1st Jan 2019”.
The new lease accounting standards IFRS 16 and FABS ASC 842, 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, planning and resources to successfully implement.
About London Security:
With over 220,000 customers across the United Kingdom, France, Germany, Austria, Belgium, Luxembourg and the Netherlands the group's services and products are delivered by local operations and are commercialised through long-established brands such as Nu-Swift, Ansul, Total, Premier and Master: the unique styling of these products makes them immediately recognisable to both the industry and customers alike. Incorporated in 1897 as an engineering company the company is today headquartered in Elland, Yorkshire and with a turnover in excess of £125 million (2017) is listed on the London Stock Exchange (AIM).
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, LOIS Lease Accounting, 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.
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.
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