PwC’s rapid readiness approach helps accelerate deployment of a lease accounting solution
PwC works with carefully selected lease management software vendors to deliver an integrated solution to help address your transition needs. Our rapid readiness approach can potentially reduce the time needed for a traditional system implementation by deploying a pre-defined, accounting focused system designed for your near-term reporting needs while also providing the foundation for sustainable lease management and reporting.
Rapid readiness can help enable your implementation workstreams, which may include:
- Project management
- Technical accounting
- System configuration and interfaces
- Data collection
- Process and procedures
- Internal controls
- Data collection
- Process and procedures
- Internal controls
- Data collection
- Process and procedures
- Internal controls
Stages in PwC’s rapid readiness approach - reaching potential future state
Data sources
Identifying the sources for your existing lease data is a critical first step in deploying a solution for the new lease accounting standard. Data for your leases may come from existing data available in systems and spreadsheets that you currently maintain. Original lease agreements may include paper documents or lease terms that may be embedded in arrangements not otherwise identified as leases. PwC’s approach helps you gather and synthesize data from multiple sources.
Initial and ongoing data capture
Initial data capture: PwC’s Data SieveTM application quickly and efficiently extracts terms and clauses from your lease agreements. Data Sieve applies advanced technologies such as natural language processing and machine learning, combined with a proprietary lease ruleset and term inventory developed by our leasing professionals. Ongoing data capture: In addition to lease data extraction, our professionals execute an approach that makes use of your existing lease datasets. The end goal is structured, cleansed data that is ready for migration into your chosen lease management system and that can also be used to calculate the impact of the new standard for transition years.
Data Sieve
Enterprise lease management and accounting
PwC’s alliances with select software vendors help facilitate rapid deployment while also enabling long-term lease management. Our approach helps reduce time by implementing a limited-scope system designed to meet near-term reporting needs while also providing the foundation for long-term, sustainable lease management and reporting. PwC can also help design future state processes to leverage the software platform features with the goal of achieving a sustainable Day 2 lease accounting process and control environment.
Ongoing financial reporting
Why pay for a separate “interim solution” to bridge your accounting during the transition period if you will ultimately still need a long-term solution? PwC’s rapid readiness approach can help take your organization through the transition to the new lease accounting standards on the foundation of a long-term solution that addresses ongoing financial reporting needs, including: general ledger, accounts payable, disclosures and tax.
Lease accounting deadline
Rapid readiness is designed to assist in a company’s compliance efforts with applicable lease accounting standards–ASC 842 and IFRS 16. However, organizations should look beyond the 2019 effective date and realize they can elect a solution that will meet both the compliance deadline and their long-term reporting needs, without paying for rework or starting anew, once the effective date passes. PwC can show you how.
The PwC advantage
PwC’s rapid readiness approach provides standardized requirements, configuration, and processes to help collect lease data and enable the accounting required by the new standard. After the initial compliance deadline has passed, management will have access to the implemented system and the ability to make additional functionality enhancements as necessary beyond accounting (e.g., operational lease management). Contact PwC to learn how your organization can benefit from our rapid readiness approach.
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Michael Flynn
Advanced Risk and Compliance Analytics Solutions Innovation Leader , PwC US
Tel: +1 (646) 471 5572
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