Works Applications, Inc. (Headquarters: Chiyoda-ku, Tokyo; CEO: Osamu Hata; hereinafter “WAP”) announces that, starting July 2, 2026, it has begun offering a consolidated elimination feature compliant with the new lease accounting standards in the latest version of its AI-powered cloud ERP “HUE.”This feature supports the consolidation elimination of intra-group lease transactions, which have become more complex due to the application of the new lease accounting standards, thereby contributing to the efficiency and accuracy of consolidated financial statement preparation.

[Background of Development] Increasing Workload in Consolidated Financial Statement Preparation Due to New Lease Accounting Standards

　As compliance with the new lease accounting standards progresses, large corporations managing group operations are facing the new challenge of handling consolidated financial statements in addition to their individual company accounting.In particular, for lease transactions between group companies, accounting treatments differ between lessors and lessees, requiring the linking of contracts and the management of profit and loss variances spanning multiple periods—all of which place a significant burden on the preparation of consolidation elimination journal entries.

　On the other hand, general-purpose consolidated financial statement systems often do not retain the necessary information, requiring separate data collection and processing. WAP developed this feature to address these challenges promptly.

[Feature Highlights] Streamlining the Preparation of Information Required for Consolidated Elimination

　This feature generates the information required for the consolidation elimination of intercompany lease transactions based on lease contract and depreciation data registered in “HUE.” By having the lease system extract contracts subject to consolidation elimination and calculate difference data, it helps reduce the workload and improve accuracy in consolidated financial statement preparation.

　WAP is working toward the full automation of consolidation elimination processes in compliance with the new lease accounting standards. Starting in 2027, the company plans to add features such as the automatic creation of offsetting journal entries for intercompany transactions and the management of retained earnings balances.

To mark the launch of this feature, we have received a comment from Mr. Katsuichi Yamamoto of KPMG/Azusa Audit Corporation.

<Comment from Mr. Katsuichi Yamamoto, Partner, Advisory Division, KPMG/Azusa Audit Corporation>
In complying with the new lease accounting standards, a key practical issue is how to efficiently eliminate intercompany transactions in consolidated financial statements.I believe that a system designed to utilize the individual lease contract information held by the lease system to assist in preparing the information necessary for consolidation eliminations will be one useful option for addressing these practical challenges.Since the offsetting and elimination of intra-group lease transactions under the new lease accounting standards is complex and challenging, we hope that companies will begin considering their approach early on to ensure a smooth transition to the new standards.

[Related Initiative] Seminar Scheduled on Consolidated Financial Statement Preparation Under the New Lease Accounting Standards

　WAP will host a seminar featuring Mr. Yamamoto, a partner at KPMG/Azusa Audit Corporation, and Mr. Yamagishi, a manager at the firm, on the topic of preparing consolidated financial statements under the new lease accounting standards. This seminar will cover the practical challenges of consolidating intercompany lease transactions and introduce this functionality.

Please visit the seminar page for details.

About HUE

HUE is an AI-driven platform developed for major Japanese corporations. It continues to evolve based on customer feedback and supports a wide range of business requirements across all industries and business types. Comprising HUE Composable ERP, HUE Business Platform, and HUE Data Platform, it provides a business and data infrastructure designed for AI utilization.Its reliability and high reputation are backed by a track record of implementation at over 2,500 companies.

Click here for the HUE product page.