In the article, we argued that the new IFRS 15 accounting change requirement is a once-in-a-lifetime opportunity for CFOs. Can that be right? Can accounting change ever be an opportunity?
Changing accounting policy is often a big undertaking. No where is this more true today than in telecoms, where implementing new revenue recognition standards (IFRS 15, ASC 606) presents a major challenge to link granular data on tens of millions of contracts, usage data and product bundles residing in disparate systems.
No one wants to spend millions of dollars on just accounting – Fortune 500 Telecommunications CFO
However surprising, we work with many CFOs who know that through achieving accounting control, they can improve key capabilities such as to:
- Streamline, simplify and automate finance processing
- Integrate acquired or disparate businesses divisions
- Unlock new financial insights & improve analytical capabilities
Today’s top CFOs invest in strategic capabilities
IBM’s 2014 CFO Study highlighted that top performing finance leaders that are better than their peers at integrating information from numerous internal sources are 38% more successful on measures of profit and revenue.
At Aptitude Software, our customers turn to us generate a detailed, granular source of accounting data. Their impetus for action may be to implement accounting change, integrate acquired businesses, address regulatory requirements or reduce costs.
Regardless of the project driver, invariably CFOs and finance teams realize that the resulting financial data foundation can be tapped to provide strategic insights into the business.
Telecommunications Industry Requirements
The telecommunications industry is characterised by high levels of competition and numerous other factors that put pressure on profitability such as high capex requirements, regulation, and OTT services.
In this environment, companies with the most detailed, granular financial information will have a natural advantage. IFRS 15 revenue recognition rules require gathering such granular transactional data. Perhaps it is an opportunity after all.
Get in touch to learn about how the Revenue Recognition Engine and Accounting Hub are used to address new reporting requirements and transform finance strategic capabilities.