MHR Analytics and CCH Tagetik have partnered with Hackney Council to provide the local authority with a best-of-breed reporting solution, purpose-designed for public sector compliance with the important new accounting regulation IFRS 16.
Coming into force next year (2021/22), IFRS 16 is a very demanding accounting regulation that requires strict compliance when preparing financial statements covering the leasing of assets such as land or equipment. Organisations must collect, collate and report substantial amounts of lease data to remain compliant.
Nick Felton, senior vice-president, MHR Analytics, said, “The biggest change is the removal of the distinction between finance leases and operating leases. From premises through to big-ticket office equipment, IFRS 16 demands detailed consideration of lease data relating to a potentially huge range of assets – many of which were previously dealt with off-sheet.
“Under the new regime, active lease management is essential. Failures in data collection, calculation and disclosure can all mean sleepwalking towards non-compliance.”
Implementation of the new combined MHR Analytics and CCH Tagetik solution for IFRS 16 gives the council the ability to manage more than 500 leases quickly and accurately, streamlining compliance. Rather than handling multiple spreadsheets, Hackney’s finance team can consolidate all their leases in one location, with quick access to detailed information.
James Newman, chief accountant, Hackney Council, said, “IFRS 16 is a complex new regulation that could pose significant challenges. By partnering with MHR Analytics and CCH Tagetik, we have invested in a cutting-edge solution to remain compliant and fulfil all of the new regulation’s tough requirements while maximising our long-term internal efficiency.”
Flexible and fully ready for extension, CCH Tagetik Lease Accounting software is at the core of the new solution. Built for finance, users can easily adapt the solution without coding. MHR Analytics said that even if a local authority or housing provider has thousands of leases, the powerful data engine at the core of the solution can process contract data quickly and makes complex compliance easy.
Felton said, “Our solution is designed specifically for the public sector and removes the stresses associated with what could otherwise be a hugely disruptive process. It ensures Hackney Council will remain compliant without having to invest in substantial extra resources and will provide a smooth transition to the new standard.”