How Europris handles 350 IFRS 16 contracts

When the IFRS 16 requirements for capitalization of leases and leasing contracts were introduced in 2019, Europris was well prepared. It is primarly rental agreements related to the stores that are covered by IFRS 16

"About 2 years before the new regulations, we started making models and forecasts to see how IFRS 16 would affect results. These were thorough and precise, if we may say so ourselves, but they had an obvious weakness: They were made in Excel, with all the limitations it had for ongoing management and maintenance, including dependence on key personnel. An IFRS 16 agreement consists of many elements, which are far better handled when working in a suitable software."

"We got to be part of the development of the IFRS 16 solution for House of Control, where I experienced our contacts in House of Control as very responsive to users' needs. In many ways, we had the final say on which output to get from the solution."

"In addition to hitting one hundred percent on this, we now have a solution that is easy to use, which removes dependency on key personnel, increases continuity, and which saves us several days of work every year. Using a dedicated software gives us extra security for the quality of the reporting."

"Every single store has numerous supplier contracts. We have collected all the agreements in one place.

This gives us better control of each store, and, a much bigger effect is that we can see the chain's purchases in a bigger picture. Now we can enter into joint agreements and framework agreements, with better prices and greater demands on quality - while the store managers can focus more on what they do best."