Disclosure Reporting

Disclosure Reporting

Disclosure Reporting vector

In recent years, several changes in the compliance landscape, including ASC 606 / IFRS 15 on Revenue Recognition and ASC 842 / IFRS 16 on Lease Accounting, have significantly altered the requirements for what data must be disclosed and how disclosure reporting is handled.

Many companies are still struggling with complex reporting. Some companies believe that a purpose-built solution for complying with the standards is not easily available and implementing can be complex for some scenarios.

Others have chosen to use “brute force” solutions such as spreadsheets or alleged cloud solutions that integrate with their ERP only to find it just doesn’t work.

In recent years, several changes in the compliance landscape, including ASC 606 / IFRS 15 on Revenue Recognition and ASC 842 / IFRS 16 on Lease Accounting, have significantly altered the requirements for what data must be disclosed and how disclosure reporting is handled.

Many companies are still struggling with complex reporting. Some companies believe that a purpose-built solution for complying with the standards is not easily available and implementing can be complex for some scenarios.

Others have chosen to use “brute force” solutions such as spreadsheets or alleged cloud solutions that integrate with their ERP only to find it just doesn’t work.

According to SEC officials in ASC 606/ IFRS 15 Disclosure following issues has been highlighted

  • Inconsistencies of the qualitative and quantitative data

  • Contract assets versus remaining performance obligations

  • Identification of performance obligations in its contracts with customers

  • Focus on customer acceptance provisions and how its affects when customers obtain control over provided goods and services

  • Request for information on disaggregating revenue by over time versus point in time

  • Additional disclosures regarding how it determines Standalone Selling Prices for performance obligations.

In ASC 842/IFRS16 Disclosure, the SEC has highlighted following issues

  • Discount Rates for Finance and Operating Lease

  • Variable and Short- Term Cost Disclosures in Lessee Cost Table

  • Nature of Leases

  • Variable Payments Subjects to an Index or Rate

  • Lease Incentives

  • Lease Classification

According to SEC officials in ASC 606/ IFRS 15 Disclosure following issues has been highlighted

  • Inconsistencies of the qualitative and quantitative data

  • Contract assets versus remaining performance obligations

  • Identification of performance obligations in its contracts with customers

  • Focus on customer acceptance provisions and how its affects when customers obtain control over provided goods and services

  • Request for information on disaggregating revenue by over time versus point in time

  • Additional disclosures regarding how it determines Standalone Selling Prices for performance obligations.

In ASC 842/IFRS16 Disclosure, the SEC has highlighted following issues

  • Discount Rates for Finance and Operating Lease

  • Variable and Short- Term Cost Disclosures in Lessee Cost Table

  • Nature of Leases

  • Variable Payments Subjects to an Index or Rate

  • Lease Incentives

  • Lease Classification

MicrosoftTeams

“What’s Get Measured: Gets Managed”

In order to deliver the full range of information in real-time and with agile manipulation of data for analysis, finance users need analytics dashboards optimized for visualization, along with flexible reports and the ability to drill-through into front-line applications such as SAP Revenue Accounting and Reporting (RAR), SAP Contract Lease Management (CLM) and to drill back to General Ledger detail.

In addition, the analytics and disclosure reporting tools must be able to seamlessly scale up for handling increasing large data sets, with real-time modeling and what-if scenarios.

Throughout the recent changes in Revenue Recognition and Lease Accounting compliance requirements, Bramasol has been at the forefront of implementing targeted SAP solutions and developing comprehensive disclosure reporting methodologies that are integrated with advanced analytics capabilities.

Bramasol have recently released an update to Analytics-Driven Disclosure Reporting Packages for RevRec and Lease Accounting that incorporate a range of significant improvements to functionality, performance and scalability.

MicrosoftTeams

“What’s Get Measured: Gets Managed”

In order to deliver the full range of information in real-time and with agile manipulation of data for analysis, finance users need analytics dashboards optimized for visualization, along with flexible reports and the ability to drill-through into front-line applications such as SAP Revenue Accounting and Reporting (RAR), SAP Contract Lease Management (CLM) and to drill back to General Ledger detail.

In addition, the analytics and disclosure reporting tools must be able to seamlessly scale up for handling increasing large data sets, with real-time modeling and what-if scenarios.

Throughout the recent changes in Revenue Recognition and Lease Accounting compliance requirements, Bramasol has been at the forefront of implementing targeted SAP solutions and developing comprehensive disclosure reporting methodologies that are integrated with advanced analytics capabilities.

Bramasol have recently released an update to Analytics-Driven Disclosure Reporting Packages for RevRec and Lease Accounting that incorporate a range of significant improvements to functionality, performance and scalability.

This new release includes significant improvements to both functionality and performance, including the following.

Revenue Recognition Disclosure Reporting:

  • Disaggregation of Revenue: by the following metrics: Products/Services – Geography, Over Time / Point in Time. This report displays the disaggregation of revenue in the ways that conform to specific company requirements.

  • Contract Balances Roll-forward: (Assets and Liabilities): These reports will display the period to period movements within the contract liability and contract asset balances as required by ASC 606 and IFRS 15.

  • Remaining Performance Obligations: (Five Year Table). This report will display remaining performance obligations over the next five years as displayed in the next five calendar or fiscal years.

  • Volumes and Scalability: new reporting architecture helps customers report on datasets of up to 1.5 million POBs at full performance and up to 9 million POBs with some performance tradeoffs.

  • Performance Improvements: the latest release (Version 3.1) is more than 100 times faster than first release

  • Analytics and Dashboards: added more visualizations for various metrics over selected periods which helps business users visualize their past and future performance and highlights Insights to Action.

RevRec Disclosure Reporting

Revenue Recognition Disclosure Reporting:

  • Disaggregation of Revenue: by the following metrics: Products/Services – Geography, Over Time / Point in Time. This report displays the disaggregation of revenue in the ways that conform to specific company requirements.

  • Contract Balances Roll-forward: (Assets and Liabilities): These reports will display the period to period movements within the contract liability and contract asset balances as required by ASC 606 and IFRS 15.

  • Remaining Performance Obligations: (Five Year Table). This report will display remaining performance obligations over the next five years as displayed in the next five calendar or fiscal years.

  • Volumes and Scalability: new reporting architecture helps customers report on datasets of up to 1.5 million POBs at full performance and up to 9 million POBs with some performance tradeoffs.

  • Performance Improvements: the latest release (Version 3.1) is more than 100 times faster than first release

  • Analytics and Dashboards: added more visualizations for various metrics over selected periods which helps business users visualize their past and future performance and highlights Insights to Action.

RevRec Disclosure Reporting
Lease Disclosure Reporting

Lease Accounting Disclosure Reporting:

  • Analytics and Dashboards: more visualization to allow users to allow users to get more graphic information with Insights to Actions, including:

    • Lease portfolio views by geography, asset classes, incremental borrowing rate ranges and lease terms

    • Lease expense and future lease commitments by category of assets, geographic locations, and lease terms

    • Five-year lease commitment tables

    • Simulations and what if scenarios

    • Incremental borrowing rate (IBR) by asset class and geographic location

  • Full Drill-Through Capabilities: enhanced disclosure reports to include drill-through for all line items from disclosure reports to detailed information in Contract Lease Management and General Ledger.

  • IBR Alternative Calculations: customer requested methodologies to calculate incremental borrowing rates.

  • Performance: increased performance of report execution by over 100%.

Lease Accounting Disclosure Reporting:

  • Analytics and Dashboards: more visualization to allow users to allow users to get more graphic information with Insights to Actions, including:

    • Lease portfolio views by geography, asset classes, incremental borrowing rate ranges and lease terms

    • Lease expense and future lease commitments by category of assets, geographic locations, and lease terms

    • Five-year lease commitment tables

    • Simulations and what if scenarios

    • Incremental borrowing rate (IBR) by asset class and geographic location

  • Full Drill-Through Capabilities: enhanced disclosure reports to include drill-through for all line items from disclosure reports to detailed information in Contract Lease Management and General Ledger.

  • IBR Alternative Calculations: customer requested methodologies to calculate incremental borrowing rates.

  • Performance: increased performance of report execution by over 100%.

Lease Disclosure Reporting