EY Lease Reviewer global proof of concept launches to support lease accounting changes

London, 12 October 2017

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  • 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.

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