The document discusses how the upcoming changes to lease accounting regulations will require companies to record operating leases on their balance sheets. This will significantly impact oil and gas companies with many complex lease contracts. Nakisa Financial Solutions can help companies prepare for the new standards with solutions to gain visibility into lease data, ensure compliance, and allow sound decisions through impact analysis. It promotes Nakisa's financial management solutions for lease administration and revenue recognition that streamline compliance and provide benefits such as cost savings and risk exposure visibility.

1. Save time and costs today, comply with new and
upcoming accounting regulations tomorrow with
Nakisa® Financial Solutions
Background
The International Accounting
Standards Board (IASB) and the
Financial Accounting Standards
Board (FASB) are currently
finalizing the accounting
regulations for leases, expecting
to issue the new standards
before the end of 2015.
The new regulations will require
organizations to capitalize many
of their operating leases and
record them in their balance
sheets as assets and obligations.
Industry Focus: Oil & Gas
With high volumes of complex lease
contracts for drilling, equipment and joint
operations, oil and gas operators are one
of the groups that are most affected by
the upcoming lease accounting standards.
To ensure that they have the IT systems,
applications, processes and controls ready
to comply and to allow for potentially
lengthy lead times, experts strongly
recommend organizations to start
considering today how technology can
help them prepare, long before adopting
the standard.
Business Challenges:
• Geographically and departmentally
dispersed lease contract information,
requiring manual processes for data
management.
• Lack of visibility into lease data, due
to large volume and complexity
of drilling, equipment and joint
operating contracts.
• No ability to conform to the upcoming
lease accounting standards.
• Uncertainty in how new regulations
will impact parallel reporting
and financial close for oil and gas
operators.
• No ability to conduct what-if scenarios
or impact analysis, for sound lease-
versus-buy decisions.
• Unnecessary spending on lease
contracts due to lack of integration of
all liabilities.
Nakisa® Solutions for Financials enable
you to:
• Prepare for new accounting standards
and adopt the right tools for reporting
compliance. Additional capabilities for
revenue contract abstraction allow for
compliant reporting against the new
revenue recognition standards.
• Gain visibility into your contractual
data, by unifying all contracts into a
single repository.
• Obtain required legal, financial, and
business validations quickly and
efficiently for better and sounder
decision making.
• Save significant costs on unduly
paid leases by gaining visibility into
contract terms and lease data.
• Achieve better strategic planning
through greater visibility into lease
exposure and revenue-related data.
Business Benefits:
• Streamlined, more cost-effective
compliance with new accounting
regulations.
• Better visibility into risk exposure by
visualizing contractual data.
• Sound decision-making, using what-if
scenarios.
• Enhanced contract validation through
stakeholder collaboration.
• Improved lease and revenue contract
administration processes.
• Accelerated reviews and audits by
generating contract summaries.
The proposed lease guidance
could significantly affect oil
and gas companies, since they
would need to reassess their
contracts, including those related
to onshore and offshore drilling,
transportation and storage, and
joint operations.
“
”KPMG International: Impact of IFRS: Oil and Gas. 2011
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2. Leading Oil & Gas companies using
Nakisa® enterprise business solutions
A global leader in enterprise business solutions for Human Capital Management
(HCM) and Finance, Nakisa delivers innovative, forward-thinking and robust
human resource and financial management solutions that advance your business
strategies. Available on premise and in the cloud.
See what’s possible with Nakisa’s powerful visualization technology:
HCM: Nakisa’s Accelerators suite is designed to optimize organizational
transformation, empower talent and stimulate employees’engagement to
deliver business results in an holistic fashion. In addition, Nakisa’s organizational
and talent management solutions ensure organizational agility and promote
alignment between the workforce and business strategies.
Finance: Nakisa’s lease administration, revenue recognition and equipment lease
management solutions help customers better manage their assets and comply
with accounting regulations.
Working with a global network of partners and as one of the few Solution
Extension (SolEx) partners of SAP® since 2007, Nakisa serves 800+ enterprise
customers and over 4 million subscribers in 24 industries. Nakisa is proud to work
with some of the world’s most renowned brands.
For further information, email us at nakisa@nakisa.com.
Copyright © 2015 Nakisa Inc. All rights reserved.