Rotterdam World Gateway
Case

IFRS16 At Rotterdam World Gateway

with Anaplan

Rotterdam World Gateway (RWG) leads the world in the innovative, fully automated storage and handling of containers. RWG is also progressive around its financial processes. The container terminal uses the Anaplan App for IFRS 16 to easily and cost-effectively comply with IFRS regulations.

IFRS 16 at RWG

The modern container terminal at maasvlakte 2 is growing rapidly and now has a strong position as a 'global hub'; since its opening in September 2015, the container terminal has already transshipped over 2,500,000 deep sea containers. continuous innovation and the application of the latest technologies play a major role in this growth. For example, the storage and handling of containers has been fully automated, making the organization a global leader.

IFRS 16 Automation

RWG is also progressive around the automation of its financial processes. For example, the container terminal previously implemented - together with Finext - Anaplan to optimize its budgeting & forecasting processes.

"Spreadsheets do not sufficiently support the IFRS 16 process. Moreover, spreadsheets go against the idea that we try to do as much as possible in one system."

The choice of the Anaplan App for IFRS 16 at RWG fits seamlessly into this vision. "During the term of lease contracts there are often changes, such as lease cars where prices are increased annually by an inflation rate. Spreadsheets then do not sufficiently support the IFRS 16 process," says Enrico Douwens, Finance Director at Rotterdam World Gateway (RWG). "Moreover, spreadsheets go against the idea that we try to do as much as possible in one system."

Anaplan app for IFRS 16 at RWG

"Adjustments and exceptions in lease contracts, as well as variations in contract types and different terms make IFRS 16 calculations in spreadsheets complex and time-consuming," agrees Stef Jansen in Finext's Wal.

Reason for Finext to develop an app for IFRS 16 in Anaplan. "We developed the app as a template, in which various transition and calculation methods are predefined based on IFRS 16 regulations. We can then adapt this basis to the needs of the organization," says Stef. with this approach, the IFRS 16 module can be implemented quickly, often within just a few days.

Cost-effective IFRS 16 process

RWG wants to keep the costs of the processes surrounding IFRS 16 as low as possible. Enrico: "IFRS 16 has made something that was simple complicated. but this sour apple is now on the table and we prefer to eat it in the largest possible bites, also towards the future. We want to do that cost-efficiently, because we don't earn an extra euro from the introduction of IFRS 16."

The cost aspect is therefore an additional reason for choosing the Anaplan App. in addition to its quick implementation, the tool is easy to maintain yourself, Enrico believes, "The app has an excellent general user interface and the model takes you step by step through the IFRS 16 process. "

More complex leases tested

The container terminal did not make its choice overnight. "We loaded our more complex leases into the app to see if this gave the same outcomes as the spreadsheets. This litmus test was quickly passed. In addition, we tested how flexible the model is."

Enrico is positive about the results of the tests. "All the possibilities I was hoping for are in it. The model leads to the desired outcomes and has quite a bit of flexibility. That offers generic advantages for any organization. in our case, there is also the advantage that the app fits in with the existing package."

"We can translate data into journal entries in many ways, depending on the information needs. Smoothly and with low risk of errors."

Enrico is also positive about the results in practice. not only are the calculations automated, but the journal entries also come automatically from the Anaplan model to the ERP system. "We can translate the data into journal entries in many ways. We can export this aggregated or per individual lease contract, depending on the information needs. Smoothly and with low risk of errors, this is read into the administration, minimizing our cutting and pasting."

Best practices as well as specific requirements around IFRS

in addition to the best practices predefined by default in the IFRS 16 module, the container terminal had some specific requirements. "We wanted to be able to sort the lease contracts not only by department, but also by other cross-sections. for example, by asset type, such as lease cars, equipment or the concession agreement," Enrico explains. "At the same time, we indicate which department the lease contract belongs to, allowing it to be tailored to the budgets of the different departments. With this we kill two birds with one stone."

These specific requirements are also set up in the app. "The user only has to indicate for each contract what type of contract it is. This can be done either manually or with upload templates," Stef says.

Connected planning

This approach fits into the vision of "connected planning," in which all data streams within Anaplan come together. "To keep things consistent, it is useful to have as few sources as possible. Comparing outcomes and looking for the causes of differences is a pure waste of time. The app forms a mini-data warehouse for leasing data. We can use the same data linea recta in our forecasting and budgeting," Enrico says.

The next step is an automatic link between the IFRS 16 model and the budget. "In the past, the world was still simple: what you paid was the cost. now we have to budget on IFRS 16 regulations. It helps that we have already done the detailed calculations in the IFRS 16 module, so we no longer have to worry about that," Enrico continues. "We can easily make the link between the IFRS 16 model and the model in which the budget is prepared, and then you can retrieve the IFRS 16 outcomes as many times as you need," Stef says.

Reliable IFRS figures

Asked for advice for other organizations looking to implement IFRS 16 cost-effectively, Enrico is clear: "Make sure it is robust and easy to maintain. In a few years, you still want to have a grip; even with adjustments and exceptions, there should be no differences between contracts and records. Ultimately, you want to produce reliable figures in accordance with IFRS regulations."

Team