Customer story: Tyman

Tyman Adopts inlumi’s IFRS 16 HFM Starter Kit

Tyman Adopts inlumi’s IFRS 16 HFM Starter Kit

As the date for transition to the new lease accounting standard IFRS 16 was approaching, Tyman were looking for a systemised solution for the reporting of leases under the new accounting standard.

Tyman is a leading international supplier of engineered components to the door and window industry. The Group’s three divisions – AmesburyTruth, ERA and SchlegelGiesse – are market leaders in their respective geographies. The Group employs over 4,200 people and operates facilities in 18 countries worldwide. Tyman is listed on the London Stock Exchange.

Tyman are strong users of the Oracle EPM stack, and currently use Hyperion Financial Management (HFM) for statutory and management reporting, Hyperion Planning & Hyperion Tax Provisioning (HTP), and FDMEE for data loading and integrations between the applications.

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The need for the project

Initial preparations for IFRS 16 were completed using spreadsheet-based solutions for calculating the impact of IFRS 16. This was not seen as a viable long-term solution due to version control issues. There was also a lack of control of this kind of solution, with users able to easily – or even accidentally – amend the calculations being performed, thus not guaranteeing accuracy of end-reported data.

Solution

Tyman has a strong relationship with inlumi from previous functional consulting projects, as well as technical support. Having viewed a webinar outlining the functionalities of the inlumi IFRS 16 HFM starter kit, the Head of IT and Reporting approached the inlumi UK functional consulting team to support the implementation of the application.

The starter kit application includes pre-written HFM rules, metadata & forms for the calculation & visualisation of lease data for IFRS 16 reporting, from individual lease amortisation schedules to higher level views of the annual impacts on the Primary Statements caused by IFRS 16 reporting.

Following initial scoping conversations in August 2018, the project kicked off the following month, and due to the deployment of the inlumi IFRS 16 starter kit being largely configuration-based, project implementation and development was limited to just a couple of months on a part-time basis, with the application ready for users to enter in transition lease data from November 2018.

Using the starter kit model, the majority of the application setup had already been performed, with just further enhancement or configuration elements remaining. The configuration included setup of the entity & cost centre (custom) dimensions to mimic those used in the statutory application, as well as the setup of Data Management processes to integrate the calculated lease data with the Tyman statutory reporting HFM application.

Configuration

Using the starter kit model, the majority of the application setup had already been performed, with just further enhancement or configuration elements remaining. The configuration included setup of the entity & cost centre (custom) dimensions to mimic those used in the statutory application, as well as the setup of Data Management processes to integrate the calculated lease data with the Tyman statutory reporting HFM application.

A further enhancement delivered with the application for Tyman was an additional validation account, into which Tyman will load their cash payment amounts reported in local ledgers. This way, a further verification of data accuracy relating to these cash balances can be performed on a monthly basis before the lease data is loaded into the statutory reporting application.

Benefits

Users were already familiar with the user interface and navigation of both HFM and the Smart View Excel add-in.As an existing HFM license holder, Tyman also did not need to incur further license costs for the use of the application.

Training was delivered to the users of the application based in the three Tyman divisions, as well as those users reviewing the entered data from the Tyman group perspective.

Application enhancements to the existing Tyman statutory reporting application were performed by the Head of IT and Reporting with the support of inlumi, ready to capture the new data which would be loaded across.

Result

Using their new leasing HFM application, the team at Tyman has successfully reported lease data under the new IFRS 16 standard, both for transition to the new standard, and also for the month of January as their first month-end reporting according to the new standard.

Tyman is no longer reliant on a spreadsheet-based approach for the calculation of lease data, providing confidence for the Group team with the use of validation calculations in the leasing HFM application to ensure data is correct before being loaded into the statutory application.

The new process of using the application slots in well with existing month-end processes, with roll-forward of existing & unchanged leases from month to month and the possibility to enter monthly changes to leases at the time these are realised, thus limiting user activities over the month end process.

In short, Tyman is very happy with the implementation of their new application with the assistance of inlumi.

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Get compliant for IFRS 16 with CCH Tagetik

IFRS 16 has gone into effect. Has your current solution for IFRS 16 not met your expectations? CCH Tagetik for Lease Accounting IFRS 16 software solution helps you transition to the new leasing regulations and get compliant quickly.

Get compliant for IFRS 16 with Oracle

IFRS 16 has gone into effect. Has your current solution for IFRS 16 not met your expectations? inlumi offers a range of built-in solutions for both Oracle EPM Cloud and Oracle Hyperion Financial Management.

IFRS 16

inlumi offers a range of built-in solutions for Oracle EPM Cloud, Oracle HFM, as well as CCH Tagetik’s Lease Accounting Solution. We are dedicated to making your journey towards IFRS 16 an easy one. We offer in-house expertise on the requirements for IFRS 16, and the technologies which can help you meet these requirements in a way that works for your organisation.