From January 1, 2018 onwards IFRS 15 requires firms to document their revenues differently in the invoices if they offer products and corresponding services as a bundle (multi-component contracts). Examples of such contracts are mobile telephone contracts including a device, software including support, or production equipment including the training of the users. For the companies, the new regulations consequently go hand in hand with significant changes in the accounting routines.
The contract management software prepares you for the update of IFRS 15. The solution facilitates the required capturing and inventory of the contracts, as it bundles all of the documents, invoices, information and value flows in audit-compliant electronic records.
The contracts can be classified via check boxes and the decision parameters can be documented in the contract via notes. These measures ensure the obligation for documentation according to IFRS 15.
cuContract comes with an invoice plan which calculates the accounting figures and channels all of the revenue and cost flows (once or periodically). In this way you can flexibly and quickly react to changes in the accounting routine and always ensure an accounting that is in line with IFRS 15.
From January 1, 2019 onwards the new standard requires the lessee to use only one single accounting model by which all leases have to be documented in a reportable manner. This also applies to tenancies, such as the rental of equipment, copy machines, office space or company vehicles. In consequence, firms have to prepare for significant additional efforts and costs. Moreover, existing leases need to be reassessed and missing data gathered for invoicing.
The contract management solution cuContract specifically addresses the new requirements of IFRS 16. It processes the inventory of the contracts in an automated manner via a range of interfaces with the SAP system, which leads to shorter handling times.
In addition, cuContract also facilitates the required re-evaluation of the leases as all of the data, contracts and payment flows can be seen at a glance in the electronic record. Data that has not been captured for invoicing yet can be added at any time. The notes function makes it possible to document the decisions made during the evaluation process in an audit compliant manner and thus to fulfill the obligation for documentation stipulated by IFRS 16.
cuContract helps you to fulfill the new requirements of lease accounting in line with IFRS 16.