London, United Kingdom — 15th October 2018 — 11 am (BST) — In a major step towards IFRS 16 compliance, Shoe Zone Retail Ltd a leading UK footwear retailer has reached an agreement with Innervision Management Limited a leader in global enterprise lease accounting software, to transition to the new accounting standard using Innervision’s LOIS Lease Accounting (“LLA”) solution.
In an announcement outlining the 3-year agreement, Shoe Zone’s Jonathan Fearn, Chief Financial Officer, stated that “Shoe Zone plc recognises the importance of complying with the new standard from 1st January 2019 and has been reviewing how best this can be achieved in a timely and efficient manner. Having evaluated the alternatives we have concluded that the LLA solution from Innervision provided the required functionality and in a format that is intuitive, easy to use and allows for a quick and straightforward implementation. The system will enable us to classify each lease correctly under the new standard, raising the required journals entries for our general ledger application whether these be in respect of property or fleet leases.”
The agreement will see LLA, the web-based lease accounting solution specially developed with lease accounting compliance in mind, deployed across the relevant areas within Shoe Zone to capture all lease contracts and correctly and accurately record the right of use of assets and the associated committed liabilities.
Innervision’s Director Martin Kennard added: ”LLA was purpose built and rolled out to assist companies, like Shoe Zone, to meet the challenges of the transition to the new lease accounting standard. We are particularly pleased to welcome Shoe Zone, such a strong player in the UK retail market, to our broad portfolio of LLA customers and we look forward to working with them to complete this project and complement their lease management going forward”.
IFRS 16 is a new accounting standard for leases which is effective for companies that report under IFRS for accounting periods beginning on or after 1st January 2019. The new standard replaces earlier leasing standard, IAS17, and requires lessees to recognise practically all leases on balance sheets - recognising a right of use asset and the associated liability. The changes are set to have far-reaching implications for any organisation that lease, and is likely to impact business systems, controls and processes.
About Shoe Zone:
Headquartered in Leicester, Shoe Zone Retail Ltd is the trading subsidiary of Shoe Zone plc, a listed company on the London Stock Exchange, is a leading UK specialist value footwear retailer, offering shoes for all the family. Having recently celebrated 100 years of shoe retailing the company now operates out of around 500 stores across the UK and Republic of Ireland. With some 3,000 employees, the turnover in 2017 again exceeded £155 million. As well as their traditional high street stores e-commerce continues to be area of focus and growth as does the expansion of the new Big Box store format.
Innervision’s lease accounting solution, LLA is a pioneering solution which supports both standards, IFRS 16 & FASB ASC 842, as well as existing IAS 17. The system allows users to easily comply with the new standards as the application allows them to centralise their lease data and produce all the calculations, disclosers and accounting reports required for compliance.
Today, the LLA solution is relied upon by a growing user base of over 1,000 users in over 27 countries that depend on LLA to help ensure compliance. The system houses in excess of 80,000 leases, with a combined value of over €25 Billion.
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: