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2 min Demo: IFRS 15

Learn how CCH Tagetik covers the IFRS 15/ASC 606 requirements with the calculations necessary for revenue recognition.

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On the move for IFRS 15: how to be compliant with no disruptions.

Let us first run a high level report to see the impact the new IFRS standards have on our P&L.;

As you can see, reports can run in the browser and in Excel: in the first column you can see the 'AS IS' numbers from the general ledger, then 2 columns with the impact of 15 and 16, and in the last column the adjusted numbers.

There we see a 'DELTA' for revenue recognition resulting from the IFRS calculations.

Let's have a look at the process of collecting the contract information, first.

As you can see different processes can be combined and configured in one application.

This particular process has 5 steps configured: data collection from the various entities in your organization, the modeling and calculations to derive the necessary IFRS adjustments and finally reporting and release to update the various local GLs.

For all entities you can easily see where they are in the process.

Typically in this step you will load data from various sources, including your general ledger for the 'AS IS' information, and the contract database or the contractual details.

Let's have a look at a simple example of a contract.

This TELCO contract has 4 performance obligations: Internet connection with SMS, cloud service, multimedia and of course the handset.

The information about the 'Transaction Price' for 'Performance Obligation' can be loaded or calculated by CCH Tagetik.

Furthermore you see information for the point in time or overtime fees, start and end date of the 'Performance Obligation'… etc… Many other fields are available for other contract types as well.

Let's see what the calculations, based on these parameters, are: both the 'AS IS', the 'DELTA' and the 'TO BE' numbers are shown with the months in the columns.

As you can see, the contract asset is calculated, and we are just in time as the performance obligations are satisfied.

Reports like this can be easily created or modified by each client, it can be run at any level in your organization, both for individual contracts, contract clusters or high levels, both for actual reporting, but also for forecasting and budgeting.

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