ifrs 16 in hfm inlumi’s solution presented by customer mowi · • upload the gl, ar, ap, ic data...

IFRS 16 in HFM

Inlumi’s solution presented by customer MOWIJune 19th 2019

© 2019 inlumi | www.inlumi.com2

Agenda

• About inlumi

• IFRS 16 in brief

• IFRS 16 HFM solution overview

• About MOWI

• MOWI’s IFRS 16 solution

• Integration using FDMEE


and

About inlumi

is a merger of


7

5

2950

31

19

• 150 employees working in 6 countries

• A large number of consultants with high seniority

• We deliver end-to-end solutions within performance management

• Oracle Platinum-partner

• OneStream Silver-partner

• CCH Tagetik Global consulting-partner

About inlumi


IFRS 16 in brief

• New required accounting standard for leases effective from January 2019

• Mainly impacting lessees

• Assets that are controlled (“right of use”) by the company should be booked in the balance sheet and depreciated like other directly owned assets

• No longer needed to distinguish between operational and financial lease for the lessee

Overview


IFRS 16 in brief

What is a lease?• a contract that conveys to the customer (‘lessee’) the

right to use an asset for a period of time in exchange for consideration

• Long-term leases of longer than 12 months

What is NOT a lease?• A service contract• short-term leases (ie leases of 12 months or less) and• leases of low-value assets (for example, a lease of a

personal computer)

Definitions


IFRS 16 in HFM

Why IFRS 16 in HFM?

• Known product for the HFM customers

• No additional license fee (providing same users as for other financial reporting)

• Structured way of gathering data

• Standard aggregations and eliminations

• Easy integration with your statutory HFM application

Overview

IFRS16

Financial

consolidation and

close

ERP

Data integration

Profitability

analysis

Financial planning

and forecasting

Mast

erd

ata

Mana

gem

ent

Com

mon

ma

sterd

ata

(a

ccoun

ts, ent

itie

s, e

tc)

Data

flow

Drill-b

ack

Left to right:

Mobile devices,

Web tools (CXO)

MS Office (PowerPoint, Excel).

Analytical purpose-built

datamarts or datacubes.

Tools for financial planning,

forecasting, consolidation and

reporting.

Integration owned and

managed by business.

Traditional data sources for

managing daily operations and

transactions.

Financial

analysis

Spend

analysis

Tax and

Transfer Pricing

CRM HR Prod.

IFRS 16 in HFMEPM architecture – high level


BASE APPLICATION

AccountsMain custom dimensionsInput formsOutput reportsCalculation rules

CUSTOMER SPECIFIC

CurrenciesEntity dimensionAsset typesAccounts

ContractsOther (free dimension)Payplan

Integration to Statutory

Integration from source

IFRS 16 in HFM Our lease application in Oracle HFM

FDM-EE

HFMIFRS16 HFM

Statutory

application

ERPLease c

ontr

acts

Lease contracts

IFRS 16 in HFM Proposed process for customers using FDME-EE

© 2019 inlumi | www.inlumi.com

MS Excel

conversion

templateHFM

IFRS16

HFMStatutory

application

Lease contracts

IFRS 16 in HFM Proposed process for customers not using FDM-EE

HFM Data extract

• Mapping tables• Visual Basic

macros to generate output file

HFM Data upload

© 2019 inlumi | www.inlumi.com


About MOWI

Asset Type• Asset types used in the contracts

Contract• Prefixed with entity code


MOWI’s IFRS 16 solutionDimensions

Entity• Same entity structure as the HFM Consolidation

application

Accounts:• Calculation accounts used from the standard

application• Added information accounts


MOWI’s IFRS 16 solutionProcess: Contract gathering and upload

In order to collect an upload the contracts to the IFRS 16 application, a MS Excel template with Smart view formulas has been created

• Example show below• Input cells includes:Entity, contract code, asset type, number, date, object, creditor,

currency, rate, start and end period, interest rate (list not exhaustive)


MOWI’s IFRS 16 solutionProcess: Contracts review in IFRS 16

There are several forms in the IFRS 16 application that will allow to review the uploaded contracts


MOWI’s IFRS 16 solutionProcess: Calculations based on the input contracts

A payment plan will be generated based on the input contracts


MOWI’s IFRS 16 solutionProcess: Postings generation

The figures calculated in the Payment plan will be used to locate the postings / adjustments that need to be transferred per legal Entity to the Statutory aplication• Information also includes relevant movements to schedules in Statutory aplication, such

as addition to assets, addition/currency/down payment of liability.


MOWI’s IFRS 16 solutionContract examples

Example of a contract defined in a different currency than the default Entity currency

i.e. (Norwegian entity with functional currency EUR, enters a contract in NOK)

• Payment plan generated in contractrate

• Fixed Asset depreciated at historicalrate(being contract rate)

• Lease liability a monetary item, translated at end-rate every month


Integration using FDMEE

MOWI is using FDMEE to:

• Upload the GL, AR, AP, IC data from M3 into the Statutory HFM application• Upload the postings generated in IFRS16 into the Statutory HFM application

• Using as a source the HFM IFRS 16 application• Using Logic groups to map postings to multiple schedules• Using a Global user to avoid removing data from other sources when

Exporting with Replace


QUESTIONS


THANK YOU

Guillermo MartinezSenior Consultant+47 404 07 [email protected]

Ashley ChapmanHead of Consulting UK+44 7958 [email protected]

ifrs 16 in hfm inlumi’s solution presented by customer mowi · • upload the gl, ar, ap, ic data...

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