JR East Management Service Begins Consideration of Adopting "ProPlus+" for New Lease Accounting Standards Compliance Across Approximately 70 Group Companies

Proship Co., Ltd. (Head office: Chiyoda-ku, Tokyo; Representative Director and President: Shishi Suzuki; hereinafter "Proship") announces that JR East Management Service Co., Ltd. (Head office: Shibuya-ku, Tokyo; Representative Director and Senior Managing Executive Officer: Kyoko Yabe; hereinafter "JEMS"), which handles accounting operations for consolidated subsidiaries of East Japan Railway Company (JR East), has begun considering the adoption and implementation of Proship's product "ProPlus+" to comply with the new lease accounting standards for accounting systems used by JR East's consolidated subsidiaries.

In anticipation of the introduction of new lease accounting standards under Japanese GAAP (applicable from fiscal year 2027 onwards), "ProPlus+", a SaaS solution from the "ProPlus" series known for its extensive implementation track record and comprehensive advanced functionalities, was highly evaluated as the next-generation standard system for approximately 70 domestic consolidated subsidiaries within the JR East Group.

Proship will fully support JEMS with highly specialized knowledge in responding to the new lease accounting standards for the JR East Group, one of Japan's largest corporate groups, and will further promote the expansion of its services to other major corporate groups facing similar challenges.

Product Under Consideration

ProPlus＋

Background and Challenges of Consideration

JEMS is entrusted with the accounting operations of the JR East Group and is responsible for the operation of accounting systems used by consolidated subsidiaries. Towards the application of the new lease accounting standards from fiscal year 2027, JEMS is selecting the optimal solution that can solve the following challenges:

• Handling a vast number of group companies and data volume

  The ability to reliably and efficiently manage diverse and large volumes of lease contracts for each of the approximately 70 domestic consolidated subsidiaries of the JR East Group on a single platform.

• Strengthening governance

  Achieving unified accounting processes and internal controls across the entire group.

• Continuous adaptation to legal revisions

  Utilizing a SaaS-based platform that reduces the system modification burden incurred with each regulatory change and continuously maintains an environment compliant with the latest standards.

Evaluation Points for Selection

The main reasons why JEMS began considering the adoption and implementation of "ProPlus+" are as follows:

• High compatibility with new standards and proven track record

  Proship's expertise cultivated through IFRS 16 compliance is optimized for the new lease accounting standards under Japanese GAAP, covering complex practical requirements with standard functions.

• Future-proof and scalability

  As a SaaS offering, it allows for quick adaptation to regulatory changes, as well as smooth future functional enhancements and automatic integration with accounting systems.

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■Smooth Support for New Lease Accounting Standards with Extensive Track Record

The new lease accounting standards are equivalent to IFRS 16 (Leases), which came into effect in 2019.

In addition to its track record in complying with the current lease accounting standards and tax laws applied since 2008, Proship has experience with over 100 IFRS 16 projects. We have accumulated numerous case studies of early adoption of the new standards in Japan and offer comprehensive services beyond system implementation, including content to support pre-system practical work such as "Impact Estimation" and "Policy Organization Site," as well as "Issue Clarification Seminars" and "Consulting Proposals" by highly specialized personnel. With abundant know-how and meticulous practical support, we aim to reduce our clients' operational burden and strongly support smooth compliance with the new standards.

◇Related Seminars on New Lease Accounting Standards

We offer numerous seminars on various topics related to the new lease accounting standards, from an overview and policy organization to tax law revisions, key points for solution consideration, and resolution of challenges. We have topics tailored to your consideration status, so please consider participating.

◇"New Lease Accounting Impact Estimation Solution" for Highly Accurate Impact Estimation

We offer the "New Lease Accounting Impact Estimation Solution" as a SaaS to calculate the impact in preparation for the application of the new lease accounting standards. It enables highly accurate estimations based on IFRS 16 case studies, not just simple calculations. Please utilize this solution for your preparation for the new lease accounting standards.

◇"ProPlus+" Providing Best Practices for New Lease Accounting Standards Compliance

"ProPlus+" is a total solution that enables compliance with the new lease accounting standards and related tax laws, leveraging the expertise cultivated through IFRS 16 (Leases). The new lease accounting standards are equivalent to IFRS 16, which came into effect in 2019, and Proship has a track record of over 100 implementations. We provide consistent support from policy organization for regulatory compliance to system implementation and operation.

About Proship Co., Ltd.

Over 40 Years of Experience as a System Vendor Specializing in Fixed Assets and Leases

Proship is a system vendor that has been providing package systems specializing in fixed assets since 1980. Its asset management solution "ProPlus" boasts over 5,500 cumulative implementations and is adopted by one out of two major companies in various industries.

In the fixed asset field, which frequently undergoes regulatory changes and requires flexible responses, "ProPlus" achieves high quality, comprehensive functionality, and continuous, rapid compliance with tax law revisions by separating fixed asset management functions from ERP and combining them with "ProPlus."

Furthermore, "ProPlus" is the market's only fixed asset system that enables global integration with standard functions. Currently, it has been implemented in 36 countries and regions, 309 corporations, and has a track record of standard compliance with tax regulations in 24 countries.

■Proship Co., Ltd.: https://www.proship.co.jp/

■Inquiries: https://www.proship.co.jp/contact/

■"Well-understood! New Lease Accounting Standards Guide": https://www.proship.co.jp/nab/