London, United Kingdom & Toronto, Canada — 11th October 2018 — 2.30 pm (BST) — Innervision Management Limited of the UK has entered into a three-year agreement to make available its LOIS Lease Accounting solution “LLA” to Akumin Corp., a diagnostic imaging service business operating in several states in the United States and a subsidiary of Akumin Inc., a company listed on the Toronto Stock Exchange (TSX: AKU and AKU.U).
Akumin currently reports its financials in accordance with IASB standards and will use LLA to transition its lease portfolio to the new IFRS 16 standard. These leases include both Akumin’s property and medical equipment assets. The goal is to be fully compliant for the accounting period beginning 1st January 2018 as required by the new lease accounting standard. Reporting under IFRS 16 will result in “right of use” assets and associated lease liabilities being reported on Balance Sheet from 1st January 2019. In effect, any and all operating type leases will be treated as finance type leases from 1st January whether new or existing.
Akumin’s EVP and COO, Rohit Navani commented, “Operating in the heavily regulated medical sector, Akumin strives always to exceed the necessary standards and being a listed company, we likewise ensure that we meet all financial accounting regulations. With this in mind, we have selected Innervision’s LLA as we are convinced that it is the software solution that will allow us to meet the deadline for full IFRS 16 compliance”.
The introduction of the new IFRS 16 standard marks the biggest change in lease accounting in over a decade and requires lessees to account for leases under a single accounting treatment, bringing the majority of leases ‘on balance sheet’ and recognizing a right of use asset and an associated lease liability.
Innervision’s Director Martin Kennard added: “As we enter the last quarter of 2018 there are, unlike Akumin, companies across the world that are still to launch there IFRS 16/ASC842 compliance projects. Akumin have grasped the nettle by firstly accepting the standard and secondly embracing the opportunity to meet the 1st January deadline. We are proud to be associated with such a well-respected operation and look forward to assisting with the transition”.
Akumin is a leading provider of freestanding, fixed-site outpatient diagnostic imaging services in the United States with a network of approximately 90 owned and/or operated imaging centres located in Florida, Pennsylvania, Delaware, Texas, Illinois and Kansas. By combining its clinical expertise with the latest advances in technology and information systems, Akumin’s centres provide physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders and may reduce unnecessary invasive procedures, minimizing the cost and amount of care for patients. Our imaging procedures include MRI, CT, positron emission tomography (PET), ultrasound, diagnostic radiology (X-ray), mammography, and other interventional procedures.
Innervision is a leasing consultancy and specialist lease service supplier, providing Lease Accounting Solutions and Lease Portfolio Management services to global corporate lessees since 1992.
Innervision’s lease accounting solution, LOIS Lease Accounting, is a flexible web-based application that supports both current IAS 17 lease accounting standards as well as the new IFRS 16 & FASB ASC 842; LOIS LA caters for all lease asset types, including equipment and property.
LOIS LA will interface with most popular ERP systems such as SAP, Oracle and other general ledger solutions, as well as common property and fleet management engines.
With its comprehensive and intuitive accounting features, alongside a straightforward implementation process, competitive pricing, extensive training programme and expert support, LLA is the perfect tool for any implementation project.
For further information about Innervision’s lease accounting solution and leasing services, visit: http://www.innervision.co.uk/
Get Up To Speed With IFRS 16
If you are looking to learn more about the changes to lease accounting and the impact that IFRS 16 will have on your organisation. Then take a look at this useful download that will show you everything you need to know at a glance.
Access your free guide by clicking on the link below: