Finance Industry Spotlight: Oil & Gas
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The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are currently finalizing the accounting regulations for leases, expecting to issue the new standards before the end of 2015. The new regulations will require organizations to capitalize many of their operating leases and record them in their balance sheets as assets and obligations. With high volumes of complex lease contracts for drilling, equipment and joint operations, oil and gas operators are one of the groups that are most affected by the upcoming lease accounting standards. To ensure that they have the IT systems, applications, processes and controls ready to comply and to allow for potentially lengthy lead times, experts strongly recommend organizations to start considering today how technology can help them prepare, long before adopting the standard.
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Finance Industry Spotlight: Oil & Gas
- 1. Save time and costs today, comply with new and upcoming accounting regulations tomorrow with Nakisa速 Financial Solutions Background The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are currently finalizing the accounting regulations for leases, expecting to issue the new standards before the end of 2015. The new regulations will require organizations to capitalize many of their operating leases and record them in their balance sheets as assets and obligations. Industry Focus: Oil & Gas With high volumes of complex lease contracts for drilling, equipment and joint operations, oil and gas operators are one of the groups that are most affected by the upcoming lease accounting standards. To ensure that they have the IT systems, applications, processes and controls ready to comply and to allow for potentially lengthy lead times, experts strongly recommend organizations to start considering today how technology can help them prepare, long before adopting the standard. Business Challenges: Geographically and departmentally dispersed lease contract information, requiring manual processes for data management. Lack of visibility into lease data, due to large volume and complexity of drilling, equipment and joint operating contracts. No ability to conform to the upcoming lease accounting standards. Uncertainty in how new regulations will impact parallel reporting and financial close for oil and gas operators. No ability to conduct what-if scenarios or impact analysis, for sound lease- versus-buy decisions. Unnecessary spending on lease contracts due to lack of integration of all liabilities. Nakisa速 Solutions for Financials enable you to: Prepare for new accounting standards and adopt the right tools for reporting compliance. Additional capabilities for revenue contract abstraction allow for compliant reporting against the new revenue recognition standards. Gain visibility into your contractual data, by unifying all contracts into a single repository. Obtain required legal, financial, and business validations quickly and efficiently for better and sounder decision making. Save significant costs on unduly paid leases by gaining visibility into contract terms and lease data. Achieve better strategic planning through greater visibility into lease exposure and revenue-related data. Business Benefits: Streamlined, more cost-effective compliance with new accounting regulations. Better visibility into risk exposure by visualizing contractual data. Sound decision-making, using what-if scenarios. Enhanced contract validation through stakeholder collaboration. Improved lease and revenue contract administration processes. Accelerated reviews and audits by generating contract summaries. The proposed lease guidance could significantly affect oil and gas companies, since they would need to reassess their contracts, including those related to onshore and offshore drilling, transportation and storage, and joint operations. KPMG International: Impact of IFRS: Oil and Gas. 2011 Copyright 息 2015 Nakisa Inc. All rights reserved.
- 2. Leading Oil & Gas companies using Nakisa速 enterprise business solutions A global leader in enterprise business solutions for Human Capital Management (HCM) and Finance, Nakisa delivers innovative, forward-thinking and robust human resource and financial management solutions that advance your business strategies. Available on premise and in the cloud. See whats possible with Nakisas powerful visualization technology: HCM: Nakisas Accelerators suite is designed to optimize organizational transformation, empower talent and stimulate employeesengagement to deliver business results in an holistic fashion. In addition, Nakisas organizational and talent management solutions ensure organizational agility and promote alignment between the workforce and business strategies. Finance: Nakisas lease administration, revenue recognition and equipment lease management solutions help customers better manage their assets and comply with accounting regulations. Working with a global network of partners and as one of the few Solution Extension (SolEx) partners of SAP速 since 2007, Nakisa serves 800+ enterprise customers and over 4 million subscribers in 24 industries. Nakisa is proud to work with some of the worlds most renowned brands. For further information, email us at nakisa@nakisa.com. Copyright 息 2015 Nakisa Inc. All rights reserved.