Christian Wetterwald Peter van Ooik

IFRS 16 / ASC 842 - Lease Accounting Made Easy

⦿ Introduction

⦿ IFRS 16 vs. ASC 842

⦿ The Solution

⦿ Solution Demo

⦿Wrap up

By: Presenter NameIntroduction

Close up Agium EPM

⦿ OneStream Platinum partner. Based in The Netherlands

⦿ Partner since Q1-2014. One of the first in Europe

⦿ Experience. Most experienced consultants in our market (avg > 12 years

in EPM)

⦿ Committed. No open-ends

⦿ Standard Procedure. Every customer asked for a reference

⦿ Expertise. Combining knowledge of Finance and IT Solutions / Tooling

What we do

⦿ Close & Consolidation Implementation and optimization of high quality consolidation

solutions to facilitate external reporting requirements

⦿ Planning, Budgeting & Forecasting Build effective planning processes to speed the

cycle time between iterations and improve accuracy and modelling capabilities

⦿ Profitability & Management Reporting Measuring and analyzing results to determine

which products, services, markets and customers are driving your profitability

⦿ Infrastructure & Integration Efficient, controlled and consistent integration among

systems to provide the accuracy and reliability that users need to perform their tasks

and provide meaningful information

Matrix consolidation

Project consolidation

Planning & Forecasting

Planning and Forecasting

Co-presenting at Splash

By: Presenter NameIFRS 16 vs. ASC 842

IFRS 16: The new lease standard

⦿ IFRS16, leases on balance

⦿ Right of Use Asset and lease liability

⦿ Depreciation, interest and repayment of lease liability instead of Operating lease

⦿ Impact on BS, PL, CF and ratios

IFRS 16 vs. ASC 842

⦿ Starts 1st of January 2019

⦿ Full retrospect or modified approach

⦿ All leases will be Right of Use Assets

⦿ Single model approach

⦿ Exemption for small value

⦿ Amortization, Interest and repayment as annuity

⦿ 15th of December 2018

⦿ Modified retrospect approach

⦿ Only PPE in consideration

⦿ Financial and operating lease

⦿ No value based exemption

⦿ Single lease expense on a straight line bases

By: Presenter NameThe Solution

Key Advantage: Relational Blending

OneStream combines Analytic, Stage, Relational, and Source transactional data in One Model:

• Simple end user experience

• Full auditability with all relational data naturally connected to analytic data

• Drill-down and through to transaction details

• Provides best performance and analysis

5/25/2018 Copyright ©2018, OneStream Software, Inc. All rights reserved. 13

XF Relational Blend

Thing PlanningCapital Planning Cash PlanningPeople Planning Sales Planning

Specialty Planning

The XF MarketPlace Specialty Solutions

Revenue RecognitionLease Accounting

Ready for Future Requirements

IC Profit Elimination (Margin details)Equity RegisterOther use cases

Compliance Reporting, and Relational Blending

OneStream Compliance RegisterRelational, Transaction Level Detail

OneStream Financial ModelMultidimensional, Summary Level Detail

Driver Data / Lookups

Dimensions / Hierarchies

Derived Data

What?

How?

How it Works

Result

What?

Transactional Information

Different Transaction Types:• E.g. for Buildings, Vehicles,

Machinery & Equipment• Easy to configure• Text, Date and Numeric Fields• Configurable Drop Down Boxes• Reuse Dimension from Financial

Model

Data collection:• Workflow Driven• Scalable Relational Model• Load from Any Source• Load from Excel Templates• Manual Input• Copy for Simulations• Roll forward (All and

Incremental)

How?

Translated Using Rules

Simple Math:• Based on Columns• Plus, Minus, Multiply and

Divide

Financial Math:• Present Value• Interest Rate• Principal Payment

Business Rules:• Macros generation• Complex Calculations• Specific Requirements

Access Information:• Drivers• Lookup Tables• Varying Exchange Rates

Becomes Financial Information

Result

Analyses• Prediction of Future Impact• Supports Decision Making

Use in the Financial Model• Direct Adjustments• Automated Journals Generation

Transfer to Other Systems• ERP (SAP, Oracle, others)• Data Warehouse

Modelling, Planning, Forecasting

By: Presenter NameSolution Demo

Lease Accounting Solution

⦿ Based on the OneStream Reporting Compliance solution with some configurations to suit the client's needs

⦿ Can be used for both Actuals, Budget and Forecasting

Demo of Actual reporting on Leases

⦿ Loading data

⦿ Changing contracts

⦿ Adding comments and attachments

⦿ Calculate contracts

⦿ Produce and post a journal

⦿ Reports

Reports

Reports

By: Presenter NameWrap up

Other Uses⦿ Revenue recognition (IFRS 15/ASC 606)

⦿ Insurance contracts (IFRS 17 / ASC 944)

⦿ Intercompany profit elimination

⦿ Investment register with automated capital consolidation

⦿ Supplemental data collection

⦿ Low level profitability calculations

⦿ Intercompany reconciliation on transactions

Q&A