KPMG unveils workforce solutions for IFRS 16 lease accounting compliance, and R&D tax credit management that enhance efficiency and decision making.
KPMG International today announced new cognitive solutions under their expanded strategic alliance with IBM to offer businesses global offerings that apply IBM Watson artificial intelligence (AI) technologies with KPMG advisory and tax services.
With a focus on some of the most critical issues of digital disruption and transformation, KPMG member firms are bringing to market solutions powered by IBM Watson that help address business needs in the areas of workforce empowerment, customer centricity, regulatory compliance, income tax credit subsidies, and other important issues topping the C-level agenda. Watson integrates machine learning, intelligent automation and other artificial intelligence technologies into a scalable system that can be accessed through a range of applications.
The empowered workforce solutions utilizing Watson now available include the KPMG Contract Abstraction Tool for IFRS 16 lease accounting compliance and KPMG Research Tax Credit Services with Watson.
“Pervasive digitization and technological disruption is changing the business landscape, and the way humans work with technology,” said Steve Hill, Global Head of Innovation and a partner with KPMG in the US.
“Our workforce offerings, such as the KPMG Contract Abstraction Tool are collaborative tools, designed to equip businesses with enhanced capabilities enabled by machine learning to help improve efficiency and decision making. We believe these collaborative solutions will provide employees with the capacity to learn new techniques, gain expertise knowledge to uncover new value and be more empowered in their roles.”
“IBM is making AI more accessible for organizations, embedding this technology in workflows and helping businesses gain insights from data to make better informed decisions,” said Beth Smith, General Manager, Watson Data & AI. “The introduction of these Watson-enabled solutions with KPMG is key to bringing the benefits of AI to professionals across the business. With the help of Watson, these KPMG solutions are able to scale the expertise of the organization.”
The KPMG Contract Abstraction Tool is a good example of how AI can enhance human cognition with capabilities that help inform decision-making and provide operational efficiencies for businesses.
Lease accounting has always been a time-consuming task and even more rigorous today with the IFRS 16 standard for recognizing, measuring, presenting and disclosing lease contracts.
To simplify the management and tracking of lease contracts for compliance with IFRS 16, the KPMG Lighthouse Center of Excellence for Data & Analytics and Intelligent Automation team in Germany and IBM Germany developed the tool which automates the extraction of lease contract data to reduce preparation time and improve accuracy of lease accounting.
Machine learning and content mining combine statistical search functionality with semantic analysis methods, allowing various data sources and types to be integrated and analyzed. The solution, which applies IBM Watson Explorer, a cognitive exploration and content analysis platform, identifies trends, patterns, anomalies and relationships between the data.
Companies that are eligible to claim the US income tax credit subsidy for increasing research activities may realize sizeable benefits including reduced income taxes, enhanced cash flow, increased financial statement earnings and earnings per share.
KPMG’s tax cognitive platform with Watson includes the ability to examine relevant documents to help obtain evidence identifying research projects eligible for credit subsidies and provide higher-quality documentation to help retain the credit subsidy upon a US Internal Revenue Audit (IRS) audit.
Further, automated document examination mitigates business disruption so key business professionals engaged in research activities can stay focused on more strategic, value added activities rather than spending large amounts of time to facilitate tax compliance.
Noted Steve Rainey, Chief Innovation Officer and National Leader of Data & Analytics, Tax, and a partner with KPMG in the US: “Through our alliance with IBM, we’re developing cognitive solutions with Watson that allow greater collaboration between humans and systems. Ensuring the ‘human in the loop’ means that our professionals’ skills and experience will be augmented by systems to help deliver richer insights for our clients.”
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KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. We operate in 154 countries and territories and have 200,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates.