On 10 June, Tiego takes part, together with Kommunalekonomernas förening, in the training session "How municipalities work in practice with RKR R5".
The training is aimed at municipalities that want to take the next step in their lease accounting work – moving away from simplifications and towards an application that better reflects the ambition of the framework.
RKR R5 aims to create more comparable accounting between municipalities by having lease agreements identified, classified and documented according to common principles. At the same time, experience from the municipal sector shows that there are still many different approaches to market valuation, interest rate setting and practical application.
Ahead of the training, Tiego has interviewed several participating municipalities about their work with RKR R5. The conversations show that municipalities are at very different stages. Some have not yet fully begun the work, others have focused on vehicles, machinery and a smaller number of property agreements, while some have analysed their entire contract portfolio, including premises, vehicles, infrastructure and intra-group agreements.
Five themes recur in almost all of the interviews:
• How has the municipality chosen to delimit the work, and which agreements are covered by the analysis?
• How are market values determined, and which method is used in practice?
• How much insight does the municipality have into the calculations behind the accounting?
• How should the latest clarifications and signals from RKR be interpreted?
• What questions do the auditors ask, and what experiences exist from other municipalities?
The conversations also show that many municipalities are looking for an exchange of experience around market valuation, implicit interest rates, the classification of premises rental agreements and how to document their assessments in a way that creates confidence for both the finance department and the auditors.
During the training, Tiego goes through the basic principles of RKR R5, the latest clarifications from RKR and experiences from municipalities that have chosen different paths in their lease accounting work. We will also show how the same contract can be analysed in Excel and in Tiego Lease Engine, focusing on market values, interest rates, classification, bookkeeping and supporting documentation for the annual report.
A special part of the training is devoted to the questions that the municipalities themselves raised in the interviews. Our ambition is to create an open discussion where participants get the opportunity to compare working methods, discuss challenges and take part in experiences from other municipalities.
We look forward to an instructive morning together with municipalities from across the country.
Read more and register via Kommunalekonomernas förening: How municipalities work in practice with RKR R5 – Courses and events – KEF