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　(Head Office: Chiyoda-ku, Tokyo; CEO: Osamu Hata; hereafter "WAP") announced today that it will launch "HUE Lease Accounting," a SaaS-type service that supports ASBJ (Accounting Standards Board of Japan) Statement No. 34 "Accounting Standard for Leases" (hereafter "New Lease Accounting Standard"). HUE Lease Accounting" will be available in the spring of 2025.
　HUE Lease Accounting" is a SaaS-type solution that automates accounting processes with simple input based on WAP's know-how, which has been providing fixed asset management systems for more than 15 years. This SaaS-type solution minimizes the initial cost and the burden associated with the application of the new lease accounting standards, even for users who do not use WAP products.

Many companies are concerned about system compliance with the new lease accounting standards.

　On September 13, 2024, the ASBJ (Accounting Standards Board of Japan) issued a new lease accounting standard. Under this standard, for fiscal years beginning on or after April 2027, lease contracts (operating leases) that were previously accounted for off-balance sheet will, in principle, be accounted for on-balance sheet, and there are concerns that this will increase the burden on accounting departments due to more complicated accounting procedures.

　WAP has already announced that its fixed asset management system, HUE Asset, will be compliant with the lease accounting standards, allowing HUE users to smoothly comply with the revised system. However, companies not using HUE Asset have raised concerns about the initial costs and burdens associated with system implementation as the mandatory adoption date of April 2027 and beyond approaches.
　When responding to IFRS 16 (Accounting Standard for Leases already adopted under International Financial Reporting Standards), the basis for this standard, there were many cases where temporary support using spreadsheet software reached its limits and the need for systemization was highlighted later. Against this backdrop, there is a need to provide a solution that can respond to legal revisions more easily and reliably.

2. "HUE Lease Accounting" enables companies to respond to the new lease accounting standards with lower initial costs.

　WAP will release a new SaaS-type service, "HUE Lease Accounting," in the spring of 2025, which will enable quick compliance with the new lease accounting standards while keeping initial costs low.

　HUE Lease Accounting" will leverage the know-how gained over 15 years of providing the fixed asset management system "HUE Asset" to provide a comprehensive set of functions required to comply with the new lease accounting standards. For example, it will support not only amortization and interest calculations based on contract information, but also re-estimation and impairment accounting, automatic compilation of increase/decrease information necessary for journal entries and notes, and preparation of original information for Appendix XVI.

　In addition, WAP has accumulated expertise in reducing initial implementation costs and timeframes through the provision of SaaS-type services such as "HUE Workflow" and "HUE Digital Invoice". HUE Lease Accounting" is expected to significantly reduce initial implementation costs and timeframes compared to conventional fixed asset management systems by incorporating the know-how honed through this experience.

3. Future development

　WAP will continue to actively provide information and develop products to support the rapid response of Japanese companies to the new lease accounting standards. WAP will continue to provide the latest information on the new lease accounting standards and how to proceed with the study on the following special website.

Special Site] Quick Guide to the Policies for Adopting the New Lease Accounting Standard

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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.

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