EY Lease Reviewer global proof of concept launches to support lease accounting changes
London, 12 October 2017
- EY Lease Reviewer helps prepare for transition to new accounting standards
- EY continues to invest in artificial intelligence (AI) to provide greater insight and enhanced client service
- AI makes it easier to extract unstructured data from lease contracts
EY announces the launch of the global proof of concept for EY Lease Reviewer to support clients as they prepare to implement new lease accounting standards. This follows an initial trial to support clients’ transition to IFRS 16 and ASC842 lease accounting standards.
Combining EY Financial Accounting Advisory Services (FAAS) subject matter knowledge and experience with the development capabilities of the EY Global AI Innovation Lab, EY Lease Reviewer allows EY teams to more fully capture, sort and analyze data from large amounts of unstructured information, particularly for large multinational corporations that may manage between 100,000 to 200,000 lease contracts of significant length.
Peter Wollmert, EY Global and EMEIA FAAS Leader, says:
“Many EY clients have millions of lines of unstructured data sitting in paper contracts across their global businesses. By digitizing these contracts and using the AI capabilities within EY Lease Reviewer, the contracts can be analyzed in greater volume and deeper detail than a manual process has previously allowed. It supports better data extraction and improved quality by allowing the review of contracts more effectively, rather than relying on only manual review. This means we may provide better access to greater amounts of information as well as a smoother transition as clients embed new accounting standards into existing processes.”
EY Lease Reviewer acts as a smart assistant, helping teams identify and extract information such as the lease commencement date, payment amounts, and renewal and termination options that are required for transitioning to the new standards and for future lease accounting requirements. The tool uses a combination of AI technologies like deep learning, text pattern commonalities and statistical modeling of text, meaning that it can extract substantial amounts of the information required for lease accounting. The technology also lets teams to start grouping contracts together, which can then be analyzed collectively.
Jeanne Boillet, EY Global Assurance Innovation Leader, says:
“Harnessing the power of AI within EY Lease Reviewer is an example of how we are continuing to find intelligent ways to improve contract review processes, work more strategically, provide greater insights and enhanced quality and client service. As EY clients’ levels of structured and unstructured data grows exponentially, we will continue to develop innovative approaches that contribute to a better understanding and utilization of the information contained within their business.”
To find out more about EY Lease Reviewer, please visit here.
- Ends -
Notes to Editors
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.
This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.
About EY Assurance Services
Our assurance services help our clients meet their reporting requirements by providing an objective and independent examination of the financial statements that are provided to investors and other stakeholders. Throughout the audit process, our teams provide a timely and constructive challenge to management on accounting and reporting matters and a robust and clear perspective to audit committees charged with oversight.
The quality of our audits starts with our 80,000 Assurance professionals, who have the breadth of experience and ongoing professional development that come from auditing many of the world’s leading companies.
For every client, we assemble the right multidisciplinary team with the sector knowledge and subject matter knowledge to address your specific issues. All teams use our Global Audit Methodology and latest audit tools to deliver consistent audits worldwide.