Advantages of an Impact Analysis in the Preliminary Phase

  • Quantification of the effects on important metrics, e.g. liabilities, assets, equity, EBIT, financial result, etc. is possible.
  • First preparation of a detailed analysis of the lease portfolio by property (e.g. property types, companies, divisions)
  • Taking and calculating inventory at short notice with little fundamental data is possible (e.g. type of property, term, lease installment payments)
  • Simulation of the leasing portfolio to determine the critical parameters and their impact (e.g. different assumptions on interest rates, terms, growth)
  • A qualitative survey of the leasing business is also possible on the basis of a brief questionnaire to determine the scope of the project, the organization, and the IT requirements (e.g. lease structure, contract parameters, responsibilities, systems, processes)
  • Timely familiarization and training of the operating units and affected functions at the HQ
  • The results are the basis for:
    • Making a decision on the options in connection with the transition to IFRS 16
    • Consideration of the effects for internal purposes (e.g. planning, budget) and external purposes (e.g. annual report, communication)
    • Planning of scope and content of conversion project (above all, time and costs)
    • An improvement in the quality of the current disclosures in the Notes to the financial statements for a "soft transition" to IFRS 16
    • Simplification assumptions and discussions with the auditor
    • First considerations regarding lease-strategy measures
    • Requirements for operating units with respect to selected parameters (e.g. estimate of terms by property type, exercising, and judging of options, leasing companies)
    • The early organization of data collection and management (e.g. collaboration with leasing companies, contract management databases)

We accompany our clients through all the other phases of the conversion process – detailed planning, definition of the leasing strategy, and roll-out. The FAS LeaseBOX has also given us leasing software (including ERP/SAP interface) that has been proven for years. It allows for classification, posting, and final accounting as well as a "soft" transition to the new lease accounting under IFRS 16. FAS AG has already implemented numerous collection projects for clients.

Advantages of FAS LeaseBOX for Impact Analysis

  • Accounting completely in conformity with IFRS, includes automatic conversion from HGB
  • Extensive management reporting on contract portfolio (e.g. planning)
  • FAS LeaseBOX is provided free of charge for the impact analysis
  • Easy to adapt to client-specific circumstances
  • All analyses are available as .xls files for analytical activities in the technical area
  • Quality assurance with numerous plausibility controls for stable lease accounting
  • Parallel accounting according to IAS 17 and IFRS 16 is possible before and after the conversion (e.g. deviation analyses, "soft transition")
  • FAS AG has many years of expertise in lease accounting according to IFRS/US GAAP
  • We use practice-tested templates for data entry and data processing for bulk transactions
  • If a lease accounting tool is introduced later, the quality-secured data from the impact analysis can be directly imported into it.
  • FAS AG has already successfully completed impact analyses for large lease portfolios (e.g. Fresenius, Coca Cola, and others)
FAS Lease AG Dr. Peter Adolph Member of the board