Expert Advice on Group Accounting and Leasing
Five golden rules for a group accountant.
Mattias Elfgren, CEO and accounting expert at Tiego, shares his experiences with group accounting and the five basic rules for effective and secure accounting. These include ensuring that shares in subsidiary companies are valued at zero, all accounts with internal balances within the group should also be at zero, the share capital and reserves in the parent and subsidiary companies should be the same, understanding the flow of equity and ensuring that cash flow is accurate.
Feel free to watch the video above.
Redu7 - The excess value in acquisitions and write-downs
A good method for identifying excess value in an acquisition according to IFRS is recommended by Mattias Elfgren, who suggests reading what FAR's standard-setting group has written in RedU 7, where they describe business acquisitions according to IFRS 3 and IAS 38. This text is easy to understand and contains good examples that can be replicated in Excel. Elfgren suggests practicing with the example from the text before inputting real values from an acquisition.
Feel free to watch the video above.
Understanding Sale and Leaseback Transactions under IFRS 16
In today's digital age, companies are often asked for advice on choosing accounting software. Mattias Elfgren, CESale and leaseback transactions are a common way to free up cash and reduce the balance sheet. However, under the International Financial Reporting Standard (IFRS) 16, these transactions have changed the way they are recognized on the balance sheet. Here's what you need to know.O and group accounting expert at Tiego, shares three important factors to consider when choosing an accounting software.
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Cash flow according to the ob-cb-method
In this video, Mattias Elfgren describes the importance of calculating cash flow at every year-end and quarterly financial statement, based on the indirect method. He provides four important tips for doing this in a simple and effective way.
Always enter debit balances as positives and credit balances as negatives.
Include extra accounts in the income statement and balance sheet.
Work with two Excel sheets and use the SUMIF formula.
Start by booking out group accounting technical exchange rate differences
The company, Tiego, offers an Excel model that they are happy to share with interested customers, which does not require the use of their software, to help accountants with their cash flow in financial statements.
Feel free to watch the video above.
Three requirements for web-based accounting software.
In today's digital age, companies are often asked for advice on choosing accounting software. Mattias Elfgren, CEO and group accounting expert at Tiego, shares three important factors to consider when choosing an accounting software.
Feel free to watch the video above.
Key advice for effectively reporting on interest companies
Interest company accounting doesn't have to be difficult, but it requires a high level of group accounting expertise in the underlying data. Mattias Elfgren shares his advice on how to make the process as smooth and efficient as possible.
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The merger process made easier with the right support.
Mergers can often be complex and complicated. Mattias Elfgren, CEO of Tiego, shares his perspective on the process and five important points to consider.
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Tiego offers support for auditors in changes to ISA 315.
Mattias Elfgren offers support to auditors in understanding ISA 315, following the approval of major changes in the regulations that govern auditors' work. We are proud of our audit trail from transactions to amounts in reports and believe that an audit of the system in management auditing can streamline the audit process. We have much to learn from auditors and are interested in hearing your reflections on the changes to ISA 315.
Feel free watch the video above.
Supporting documentation for the note on financial leasing and for the auditors' review.
In this film, Kevin Hall from Tiego and Marcus Johansson from Aspia present proposals on how leasing can be accounted for more transparently in municipalities' and regions' annual reports, based on the regulations of RKR (Swedish Accounting Standards Board).
Historically, municipalities and regions in Sweden have not followed RKR's regulations for accounting for leasing, which has been brought to attention. Kevin and Marcus propose categorizing leasing contracts and reporting them per category based on RKR's definitions, as well as disclosing information with maturity structure per asset class and considerations when a lease has been accounted for as financial or operational. Through increased transparency, readers of annual reports can more easily understand considerations and gradually achieve better comparability between municipalities and regions.
Feel free to watch the video with Marcus and Kevin for more information.
Audit reports on financial leasing.
In this article, Mattias Elfgren from Tiego and Marcus Johansson from Aspia discuss audit reports that point out deficiencies in the application of RKR's rules for financial leasing in the municipal sector.
According to the reports, the rules are not being applied correctly, and many contracts are being assessed as financial agreements. Gävle municipality is an example of this, where 32 contracts were assessed as financial, and KPMG called for a reassessment. Umeå and EY have also examined the area and found deficiencies in the application of the regulations. Mattias and Marcus recommend reading the reports and taking note of the white paper on financial leasing from December 2020 to correctly follow the regulations.
Feel free to watch the video where they present two audits from Gävle and Umeå and provide there view on how to follow the regulations and the white paper on financial leasing.
Similarities and differences in the accounting treatment of leasing in municipalities with K3 and IFRS
In this film, Mattias Elfgren, CEO of Tiego, and Marcus Johansson, accounting expert from Aspia, discuss the differences between the various regulatory frameworks (IFRS 16, K3, and RKR R5).
What are the actual differences when it comes to leasing in municipalities?
Specifically, IFRS 16 requires all leased properties to be included in the balance sheet, while K3 treats leased properties as operating leases, and RKR R5 falls somewhere in between depending on factors such as the length of the lease and whether the property is customized.
Feel free to watch the video with Mattias and Marcus where they go into more detail on what applies when it comes to accounting for leasing in municipalities according to K3 and IFRS.
Financial leasing in municipalities, a short and a long contract.
Financing of leasing in municipalities is the topic of discussion. It has been relevant for several years and the need to implement RKR's regulations has become increasingly relevant.
Historically, financial leasing agreements have often gone unnoticed and many have been classified as operating leases instead of financial leases.
Marcus and Kevin recommend that municipalities and regions analyze the effects of long-term agreements and leasing arrangements on their financial reports. Although Excel can be useful initially, it is often too complex for large volumes and agreements. Tiego's leasing system (TLE) was designed to help manage leasing agreements efficiently.
Feel free to watch the video with Kevin and Markus for managing short and long-term contracts.