Odakyu Electric Railway Adopts "HUE Asset" for New Lease Accounting Standards, Aiming for Integrated Application Across 30 Group Companies

Works Applications Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; CEO: Osamu Hata; hereinafter "WAP") announces that Odakyu Electric Railway Co., Ltd. (Headquarters: Shinjuku-ku, Tokyo; President: Shigeru Suzuki; hereinafter "Odakyu") has adopted the fixed asset management system "HUE Asset." With this adoption, Odakyu will centralize its compliance with new lease accounting standards across 30 group companies using "HUE." By leveraging the high interoperability with the "HUE" series, which has been used in the financial accounting domain, the company aims to reduce its operational burden. [Image] ### **[Background of Adoption] Considering a Lease Management System Across the Group** Odakyu operates a diverse range of businesses, including railway, real estate, and leisure/hotels. Due to these business characteristics, it has many real estate lease agreements, and the impact of new lease accounting standards was anticipated across all 30 group companies. In particular, cases of subleasing real estate to group companies or retail tenants are frequent, leading to challenges in the complexity of accounting treatment for subleasing. "HUE Asset" can handle these requirements with its standard functions and has a track record of adoption by other railway operators, leading to its selection. ### **[Expected Effects] Consolidating Responses for 30 Group Companies, Reducing Burden of Compliance** Companies that sublease real estate among group companies require lender and sublease functions to comply with new lease accounting standards. "HUE Asset" is equipped with these functions as standard, enabling efficient handling of complex accounting processes associated with new lease accounting standard compliance. Furthermore, by automatically linking with the financial accounting domain, journal entries, and organizational data already implemented in the "HUE" series, it reduces the burden of system construction and operation. This will enable Odakyu to reliably proceed with compliance for new lease accounting standards across its 30 group companies while minimizing operational workload. Odakyu has been considering the state of lease management across the group in preparation for new lease accounting standards. We adopted "HUE Asset" because, in addition to its compatibility with the already implemented "HUE" series, it can handle contract types including subleasing and can be deployed across group companies. Going forward, we aim to steadily proceed with compliance and enhance lease management across the entire group. ### [About HUE] HUE is a domestically developed ERP for major Japanese corporations, continuously growing through customer feedback to meet a wide range of business requirements across various industries and business types. It boasts over 6,700 standard functions and a 97%* fit rate for RFPs. Its track record of over 2,400 company introductions supports its reliability and high evaluation. *97% fit rate is based on our criteria The HUE product page is [here](https://www.worksap.co.jp/?utm_source=ownedmedia&utm_medium=segMail&utm_campaign=260410PressRelease) ### [About Works Applications] Works Applications was founded in 1996 as a Japanese-based E