UC-453
IFRS 15 and 16 Recognition Review
Reads customer contracts and leases, extracts the obligations, terms and options that drive recognition, and drafts the memo.
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The Challenge
A revenue or lease population is sampled by hand and the judgement in each contract is re-argued every year. It persists because contracts sit in the client document store in no fixed shape.
How It Works
- Reads customer contracts, side letters, lease agreements, amendments and accounting policy.
- Extracts performance obligations, lease terms, options and variable consideration.
- Drafts the recognition memo per contract with the clause cited beside every conclusion.
What It Removes
- Reading whole contracts to find recognition terms
- Rekeying lease terms into the measurement model
- Rewriting last year's judgement memo from scratch
Input Data RequirementsCustomer contracts and side letters, lease agreements and amendments, client accounting policy, prior-year memos, revenue and lease ledgers
Output FormatRecognition memo per contract with clause citations, a population summary by treatment, and a queue of contracts needing a partner judgement
“We re-read the same hundred contracts every year and reach the same conclusions the slow way”