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　(Head Office: Chiyoda-ku, Tokyo; CEO: Osamu Hata; hereinafter "WAP") will begin offering a new service, "New Lease Accounting Standards Impact Assessment Service," to quickly assess the financial impact of the new lease accounting standards. By using this service, a trial calculation will be provided in approximately one month* simply by submitting information on accounting journal entries and undergoing a hearing. This allows the client to quickly complete the trial calculation and spend more time considering the workflow, systems, etc.

1. Background of the service: Delay in preparation for application due to hurdles in trial calculation of the impact amount

　Under the new lease accounting standards, lease contracts (operating leases) that were previously accounted for off-balance sheet will, in principle, be required to be accounted for on-balance sheet. It is said that all Japanese companies will be required to comply by around 2027, and that companies with large impact will need to make significant changes to their systems and workflow.

　However, as of May 2024, many companies do not know how much they will be affected, and only a few have yet to consider their systems and workflows. This is due to the difficulty of collecting contracts managed at each site and the difficulty of accounting considerations such as lease term calculation standards. In addition, in many cases, requesting outside assistance for such studies requires a certain level of budget, and as a result, there are still many companies that have not yet made progress in preparing for the application of the standards.

2. Service Feature 1: Only journal entries need to be submitted, and trial calculations are presented within one month.

　WAP has launched the "New Lease Accounting Standard Impact Assessment Service" to enable major companies to easily calculate an estimate of the impact and prepare for the application of the standard. This service uses proprietary logic to extract lease contracts from journal information and, in three simple steps, calculates the financial impact of the introduction of the new lease accounting standard in approximately one month. User companies only need to provide information on their own accounting journal entries and undergo a hearing to receive a diagnostic report with a trial calculation of the impact in about one month(*). Pricing starts at 300,000 yen per company, making it easy to apply for this service within a temporary budget.

(*The time frame for the presentation will vary depending on the busyness of the service and the individual company's situation at the time of service provision, etc.)

3. Service Feature (2): Full reports and trial calculation tools for future support.

　The report provided by this service presents not only the results of the impact amount trial calculation, but also recommended system configuration and work flow according to the amount of money and characteristics of the contract. This allows you to understand the characteristics of your company and proceed more smoothly with future operational and system considerations.

In addition, WAP's free Excel-based "Impact Cost Estimation Tool" is used to estimate the impact amount, and the results are provided in an Excel file. The results are provided in an Excel file. This means that the person in charge can change the assumptions used in the estimation, such as the estimated lease term and discount rate, by himself/herself.

4. Future Developments

　WAP is continuously disseminating information on the trend and consideration of the new lease accounting standard, and provides the latest information on a special website. In addition, we have been the first to launch a response to the new lease accounting standards in our fixed asset management system , HUE Asset.

　We will continue to provide solutions that are closely aligned with the challenges of dealing with legal and institutional changes at major companies, and continue to offer products that change the way our customers "work" and create surprise, excitement, and inspiration.

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Special Presentation on New Lease Accounting Standards

KPMG/KPMG AZSA LLC will give a special presentation at the "WorksWay 2024 Non-Retirement" (held online) on July 18 (Thu.) and 19 (Fri.), 2024.
　The theme of the presentation will be "The New Lease Accounting Standard with Impending Mandatory Application - Overview of the Standard and Key Points for PJ". This presentation will provide a detailed overview of the new lease accounting standard and the key points of the project.

• For more information, please visit
  *No charge to attend, pre-registration required

About Works Applications

Works Applications was founded in 1996 as an ERP package vendor in Japan. With innovative solutions such as no-customization and free version upgrades, we have supported the growth of our customers, mainly major Japanese companies. Believing in the potential of each individual, we aim to be a "growth engine" that maximizes the value of companies and individuals, and we will continue our pursuit of turning "work" into "creation" and making "work" fun.

*Company names, product names and service names are trademarks or registered trademarks of their respective companies.
*The information in this release is current as of the date of publication, and is subject to change or withdrawal without notice. Please be aware that the forecasts and other forward-looking information in this release are based on uncertainties and may differ from actual results.