From Excel to a structured approach – this is how HiQ manages IFRS 16 with Leasify
With 25 subsidiaries and lease agreements across multiple countries, HiQ was faced with increasing demands for control and follow-up in its IFRS 16 reporting. By implementing Leasify, the group has created a more unified, transparent, and reliable way of managing lease accounting at group level.
About HiQ
HiQ is a technology consulting group with roots in Sweden, founded just over 30 years ago by four consultants. Since then, the company has grown to include approximately 1,600 software developers and specialists, with operations in Sweden, Germany and Finland.
HiQ works broadly with digital transformation across a wide range of industries, including banking and finance, the defence sector, and the public sector. Its assignments include, among other things, the development of digital infrastructure for public services, payment solutions, and advanced solutions for automated and autonomous vehicles, contributing to increased product safety within Swedish industry and medtech.
Klara Fröjdh works as Group Financial Controller at HiQ. In her role, she operates at group level and is, among other things, responsible for collecting and consolidating reporting from the group’s 25 subsidiaries. This reporting is used as a basis for the group’s IFRS 16 accounting.
Klara has a solid background in audit. During the implementation of IFRS 16, she worked closely with her then clients to support them in both the implementation and interpretation of the standard, laying the foundation for her expertise in lease accounting. This experience is something she brings into her current role at HiQ and in her work with Leasify.
Challenges before Leasify
When Klara began working at HiQ, it quickly became clear that the previous approach to lease accounting, which largely relied on Excel, was not sufficiently fit for the group’s needs.
– The solution we had simply wasn’t good enough. Certain elements required in lease accounting cannot be managed in Excel, such as index adjustments or changes to lease contracts over time. In addition, we have foreign subsidiaries where contracts are sometimes structured differently, which further increased the complexity, Klara explains.
Despite working with well-designed templates, the calculations were complex and inflexible, making them more difficult and time-consuming to verify and follow up.
– There was simply no assurance that all changes to the contracts were always accurately reflected. This meant there was a risk that potential errors might go unnoticed, Klara says.
This highlighted the need for a more robust and structured solution, prompting the group to begin evaluating alternative options.
Improved oversight and strengthened control with Leasify
When HiQ evaluated different system solutions for lease accounting, Leasify was one of several alternatives considered. As the group was already using DBI Provider, a partner of Leasify, Leasify emerged early on as a recommended option.
After comparing the various solutions, the choice ultimately fell on Leasify.
– Leasify was perceived as very user-friendly, logically structured, and interactive. Overall, it felt like the best solution among those we evaluated, Klara says.
In connection with the implementation of Leasify, HiQ also took a more comprehensive approach to its internal processes and controls related to lease accounting. This has led to clear improvements in both structure and follow-up.
– We introduced many new internal controls when we transitioned to Leasify, and it has made a significant difference. Today, we have a completely different level of oversight of our lease contracts and how they are followed up, Klara explains.
All lease agreements are now consolidated in a single system, which has significantly simplified follow-up compared to previous practices.
– Previously, the information was more fragmented. Now it is much easier to follow up on the contracts and quickly see if anything has changed. If something deviates, it is easy to identify what has happened and assess whether the change is reasonable. Overall, our reasonableness assessments have improved significantly, Klara concludes.