Gathering and validating lease data is crucial in the IFRS 16 implementation process to ensure the completeness and accuracy of financials and reporting. This process however, has proved time consuming and has introduced various roadblocks such as:
Don’t know where the data is located
Decentralised processes – data is housed in various locations and systems
Lease agreements aren’t electronic
Cleansing of existing and collected data
High volume of data fields
Multiple currencies
Lease contracts in various languages
It is important to allow sufficient time to undertake this process as in most cases, the time required is often under-estimated.