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

Proship Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; President and Representative Director: Motofumi Suzuki; hereinafter "Proship") announces that JR East Management Service Co., Ltd. (Headquarters: Shibuya-ku, Tokyo; Representative Director and Senior Managing Officer: Kyoko Yabe; hereinafter "JEMS"), which is responsible for the accounting operations of consolidated subsidiaries of East Japan Railway Company (JR East), has begun considering the adoption and implementation of our product "ProPlus+" to comply with the new lease accounting standards in the accounting systems used by JR East's consolidated subsidiaries. In anticipation of the introduction of new lease accounting standards under Japanese GAAP (to be applied from FY2027 onwards), Proship's SaaS solution "ProPlus+" from the "ProPlus" series, which boasts extensive implementation experience and comprehensive functionality, 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 large corporate groups facing similar challenges.

Products Under Consideration

ProPlus＋ Click here for details on ProPlus＋

Background and Challenges of Consideration

JEMS is entrusted with the accounting operations of the JR East Group and is also responsible for the operation of accounting systems used by consolidated subsidiaries. Towards the application of new lease accounting standards from FY2027, JEMS is proceeding with the selection of the optimal solution that can solve the following challenges:

• Handling a vast number of group companies and data volume

  Reliably and efficiently managing diverse and large volumes of lease contracts for each of JR East Group's domestic consolidated subsidiaries on a single platform.

• Strengthening governance

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

• Continuous adaptation to legal revisions

  Utilizing a SaaS-based platform that can reduce the burden of system modifications that occur with each institutional revision and constantly maintain 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 Japan's new lease accounting standards, covering complex practical requirements with standard functions.

• Future-proof and scalability

  As a SaaS offering, it allows for rapid response to institutional revisions, as well as smooth future functional enhancements and automatic integration with accounting systems.

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

The new lease accounting standards are equivalent to IFRS 16 (Leases), which began to be applied in 2019. In addition to its track record in responding to current lease accounting standards and tax laws applied since 2008, our company has over 100 project implementation achievements for IFRS 16. We have accumulated numerous cases of responding to new standards that are leading in Japan, and in addition to providing content that supports practical work before system implementation, such as "Impact Estimation" and "Policy Organization Site," we offer comprehensive services that go beyond system implementation, including "Issue Organization Seminars" and "Consulting Proposals" by highly specialized personnel. With abundant know-how and meticulous support tailored to practical needs, we will reduce the operational burden on our customers and strongly support smooth compliance with institutional changes.

◇Related Seminars on New Lease Accounting Standards

Overview of new lease accounting standards, policy organization, and tax law revisions. Keywords: New Lease Accounting Standards, Lease Management System, Fixed Asset Management System, Tax Revision Compliance, ProPlus+, SaaS, Group Management, Business Process Improvement, Finance/Accounting DX, JR East Management Service