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　(Head Office: Chiyoda-ku, Tokyo; CEO: Osamu Hata; hereafter "WAP") announced today that its fixed asset management systems "HUE Asset" and "HUE Classic Assets Management" are now compatible with the "Accounting Standard for Leases" (hereafter "New Lease Accounting Standard"), which will be released on September 13, 2024. HUE Asset" and "HUE Classic Assets Management", the fixed asset management systems, have been released in compliance with the "Accounting Standard for Leases" (the "New Lease Accounting Standard") released on September 13, 2024. This is the first release of an ERP and fixed asset management system in Japan* that supports the new lease accounting standard.

The "first in Japan" is based on product information, press releases, and websites of major ERP/fixed asset management system vendors in Japan that are publicly available as of October 10, 2024, as well as research results we have confirmed. This research is based on publicly available information and does not cover all products and services from all market participants. It also includes information from user interviews and catalogs.

1. New lease accounting standards make it difficult for existing systems to cope with the new lease accounting standards.

　On September 13, 2024, the ASBJ (Accounting Standards Board of Japan) issued new lease accounting standards. Under the new lease accounting standard, operating leases that were previously accounted for off-balance sheet will now be accounted for on-balance sheet for fiscal years beginning on or after April 2027, which is expected to increase the burden on accounting departments due to more complicated accounting procedures. In addition, the new lease accounting standard requires accounting treatment that has not been used before, such as measurement of lease term and treatment that takes into account incidental expenses. In many cases, existing systems were not able to meet all of these requirements, and WAP had received concerns about system support.

2. First in Japan to provide functions quickly based on experience in compliance with IFRS 16

　In early October 2024, WAP released new lease accounting standards compliant features for its fixed asset management systems, HUE Asset and HUE Classic Assets Management. HUE Asset has already standardized its functionality so that it can be used in accordance with IFRS 16, which requires the same accounting treatment as the new lease accounting standard. HUE Asset has been extended to be able to use the new lease accounting standard as well, and is now available within one month of the standard's release. This is the first time (according to our research) that a functionality compliant with the revised standard has been released in Japan.

　The new functionality addresses major changes in lease term measurement, prepaid lease payments, initial direct costs, and incentives, and supports a wide range of functions from input to automatic calculation and inquiry output.

3. Total support for compliance with the new lease accounting standards based on more than 15 years of experience

　WAP will continue to actively provide information and develop products to support Japanese companies in their rapid response to the new lease accounting standards, and we invite you to attend a seminar on Thursday, October 24, 2012, to learn more about HUE Asset with a product overview demonstration.

<Seminar Outline>
Name: "[Announcement of the fastest response to the new lease accounting] HUE Asset Product Introduction Seminar!
Dates: Thursday, October 24, 16:00 - 16:40
Venue: Held online at
Participation fee: Free
For details and registration: https://landing.worksap.co.jp/24.10.24_Asset_LP1.html

　WAP has over 15 years of experience in providing fixed asset systems and offers an "Impact Assessment Service" to assess the financial impact of the new lease accounting standards on major companies, and will release a SaaS-type "HUE Lease Accounting" in the spring of 2025 that will enable companies to comply with the new standards while keeping initial costs low. We are also providing total support to help you cope with the revised standards, including the release of our SaaS-type "HUE Lease Accounting" in the spring of 2025. We will continue to provide the latest information on the revision and how to proceed with the study on the following special site.

Special Site] Quick Guide to the New Lease Accounting Standard

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 contained in this release are uncertain and may differ from actual results.