STAMFORD, Connecticut and LUCCA, Italy, October 2, 2017 /PRNewswire/ --
CCH Tagetik , part of Wolters Kluwer Tax & Accounting and a leader in global performance management software solutions, today announced that Ambea, a leading care provider in Sweden and Norway, has selected CCH Tagetik's IFRS 16 Lease Accounting Solution. Ambea has more than 1,000 lease contracts associated with its 450 care facilities.
Issued by the International Accounting Standards Board, IFRS 16 lease accounting requirements go into effect January 1, 2019. The new standards require extensive reporting detail and have the potential for major impact on companies' balance sheets. Industry experts advise companies with large lease portfolios to allow significant time in advance of the deadline to identify, compile, and evaluate lease contracts.
"In order to allow for greater flexibility in growth, Ambea has deliberately based its business strategy on leasing rather than building and owning its facilities. Therefore, IFRS 16 will have an impact on our financial statements," said Daniel Warnholtz, Ambea CFO. "We also want to ensure our investors receive early guidance on how this change in accounting principles will impact key ratios and position us against competitors. Being a listed company, we must also ensure all contracts are continually governed and managed in an efficient, auditable way.
"For us, the selection of CCH Tagetik for IFRS 16 is a natural extension of our financial platform. We have been using CCH Tagetik's unified solution for consolidation and disclosure management system for five years and have a successful, productive partnership. The CCH Tagetik IFRS 16 solution has extensive built-in calculations with easy configurability, the ability to drill down to contract-level details, and a centralized lease data repository which will help us more effectively manage and maintain leases across the enterprise," he added.
"We are proud to work with Ambea to further advance its financial reporting and meet the daunting requirements of IFRS 16," said Erik Granbom, sales director for CCH Tagetik Nordic. "The new standard poses considerable accounting challenges for any company with a large lease portfolio. Most companies do not have a system in place, and we see an increasing demand from listed companies looking for a lease management system to support and govern the lease accounting process.
"IFRS 16 requires much more detail than is likely currently tracked, which means that each individual lease has to be analyzed before any of the accounting work can be done. The amount of work to capture and maintain lease data is often underestimated, so even though IFRS 16 doesn't go into effect until 2019, we strongly advise companies to have a technology solution in place before the end of this year," he added.
CCH Tagetik's IFRS 16 Lease Accounting Solution can also be used for ASC 842 reporting, required for those companies doing business in the United States. The solution offers a single source of truth, a contract data repository, easy integration with ETLs for easy importing and exporting, built-in calculations and finance intelligence, workflow management and complete data auditability. Further details can be found on this resources page .
CCH Tagetik understands the complex challenges that face the Office of the CFO and translates that knowledge into intuitive, enterprise-scale CCH® Tagetik performance management software solutions that drive business results. Learn more about CCH Tagetik at www.tagetik.com.
Ambea is one of the leading providers of care in the Nordic countries. The company provides accommodation, support, training and staffing services for health and social care. Ambea currently has more than 450 units in Sweden and in Norway and approximately 14,000 employees. Listed on Nasdaq Stockholm, the company was founded in 1996 and its head office is located in Solna, Sweden.
About Wolters Kluwer
Wolters Kluwer (AEX: WKL) is a global leader in professional information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services.
Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide.
Wolters Kluwer Tax & Accounting is a leading provider of software solutions and local expertise that helps tax, accounting and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. CCH Tagetik a part of the Tax and Accounting division, provide solutions to CFOS for Corporate Performance Management.
SOURCE CCH Tagetik