Proship Announces Implementation of ProPlus Lease Management Module for Nippon Express

Proship Enhances Nippon Express Lease Management with ProPlus Module

In a significant move towards enhancing lease management efficiency, Proship Corporation, headquartered in Chiyoda, Tokyo, has announced the implementation of the "ProPlus Lease Contract Management Module" for Nippon Express, also based in Chiyoda. This initiative responds to the need for compliance with the International Financial Reporting Standards (IFRS) and aims to optimize contract management processes.

Background and Challenges

Since adopting IFRS in the fiscal year 2022, Nippon Express has made strides in managing leases from a financial reporting perspective. However, with the impending enforcement of new lease accounting standards in 2028, the company recognized the need for a more sophisticated lease contractual management system. Some of the challenges identified included:

- The coexistence of leasing processes that comply with both Japanese standards and IFRS.
- Mismatched data management granularity between current systems and management accounting frameworks.

Reasons for Adoption

Nippon Express chose the ProPlus lease management module for several compelling reasons:

1. Existing Trust: The company had already been utilizing ProPlus for fixed asset management, establishing a reliable partnership.
2. Proven Expertise: Having conducted over 100 IFRS-compliant projects, Proship has extensive implementation experience and specialized knowledge in financial regulations.
3. Dual Compliance: The ability to manage records at the account level while complying with both Japanese and IFRS standards.
4. Customizability: The ProPlus module offers a wealth of management options, allowing Nippon Express to handle lease contracts with the necessary granularity.
5. Future-readiness: Proship anticipated upcoming updates that would enhance functionality and user experience, adapting to new lease accounting regulations.

Implementation Impact and Future Outlook

With plans on track, the ProPlus module is set to commence operations in August 2025. Nippon Express is expected to integrate this advanced system into its operations, ultimately leading to improved accuracy and efficiency in lease contract management.

While the initial focus of the project is on IFRS management, there are plans to extend support for compliance with the Japanese accounting standards due to their imminent enforcement.

Proship's Role

Proship, specialized in fixed asset and lease management solutions, has been providing functionality to enhance management frameworks and improve operational efficiency. The company is committed to continually supporting Nippon Express as they prepare for the new lease accounting standards due in 2028, utilizing their extensive implementation experience and adaptability to regulations.

Practical Support Under New Lease Accounting Regulations

The new lease accounting standards align with IFRS 16, initiated in 2019. Proship has a track record of addressing the current lease tax legislation in Japan since April 1st, 2008, alongside managing over 100 projects under IFRS 16. They possess considerable knowledge of domestic precedents, allowing them to provide comprehensive and detailed support for clients preparing for these changes, ultimately easing the workload and facilitating a smooth transition to compliance.

Related Seminars and Tools

Proship offers various seminars addressing new lease accounting standards, covering topics from general overviews to specific solutions tailored for different business needs. Additionally, they provide a cloud-based solution for calculating the financial impact of new lease accounting rules, developed from IFRS 16 case study requirements, ensuring high-accuracy projections.

ProPlus+ is another solution aimed at comprehensive support for businesses navigating the new regulations, leveraging insights gained from IFRS 16 implementations. This end-to-end support helps streamline everything from preparation attempts to system deployment and operation.

About Proship Corporation

Established in 1980, Proship has specialized in fixed asset management systems for over four decades, demonstrating reliability with 5,497 implementations across various industries. By offering flexible and comprehensive systems, Proship enables businesses to manage their fixed assets efficiently, ensuring adherence to frequent regulatory changes. Today, ProPlus is implemented in 236 entities across 28 countries and regions, with functionality aligning with the tax regulations of 24 countries.

For more information, visit Proship Corporation or review their resources on new lease accounting standards.