Once you input key details from your leases, the lease assessment app shows how the change in accounting standard will impact your lease portfolio.
By calculating the position under existing and new standards (under IFRS or US GAAP), you can quickly compare and assess the impact across your whole lease portfolio. You can also change underlying assumptions to see how they would affect the outcome.
Understand key metrics
Once you’ve uploaded your existing financial information, you can see the impact of the new leasing standard on your overall financial position and performance, including your profit and loss, balance sheet and cash flow statements.
The app has a comprehensive set of key metrics including: EBITDA; EBIT; net profit margins; interest cover; and gearing so you can understand how the change in the accounting standard will impact on the key metrics which are important to your business.
See the impact over time
The new leasing standards will introduce unprecedented volatility into your financial statements and lease liabilities and lease expenses. When key leases are renewed or replaced, the liabilities will increase overnight and interest expense will increase in the following years.
By modeling your portfolio over time, with most leases being renewed or replaced (you can choose individual leases to not be renewed), you can see how the impact of the accounting standard will play out over time, allowing you to make decisions now which optimise your lease portfolio for the future.
On top of these features already included in the Lease Assessment App, PwC can customise it for your specific requirements.
The app has been designed for impact assessment, rather than financial reporting, and so does not consider every possible scenario of accounting for leases. But the app can be tailored to fit the unique characteristics of your lease portfolio.
Further, the app could be easily tailored to your specific needs; to report on your customised metrics, to analyse geographically as well as by division and to consider subleases and make good provisions.
Imagine the power of 180,000 people with a common purpose—building relationships that create value for you and your business. This is PwC. Every day, our people work with you to build the value you are looking for. Our specialist financial and performance management teams optimize the use of Anaplan to align planning, consolidation, reporting, and analytics processes, systems, and information to provide business insights that drive better decisions and actions.