Telecom Case

Study
Hamilton Case study in the
Telecommunication Industry

Confidential and proprietary materials for authorized Cognitus Consulting LLC

personnel and outside agencies only. Use, disclosure or distribution of this material is
not permitted to any unauthorized persons or third parties except by written
agreement.
Facing IFRS 15 and IFRS
16 challenges with ease

Introduction
One of South East Asia’s largest telecommunication
operators based in Malaysia was worried about
IFRS 15 and IFRS 16 new accounting standards,
like several organizations throughout the world.
They studied the impact on their business and
looked for a viable solution to comply with the latest
accounting requirements. Hamilton Engine by
Cognitus is the solution for IFRS compliance
requirements.

Confidential and proprietary materials for authorized Cognitus Consulting LLC

personnel and outside agencies only. Use, disclosure or distribution of this material is
not permitted to any unauthorized persons or third parties except by written
agreement.
 Challenges: IFRS 15 & IFRS 16

Challenges Solution

The introduction of IFRS 15 and 16 has Why the Hamilton Engine? Hamilton is the

caused quite a stir in the accounting simplest, fastest and most comprehensive

community, it is the perfect storm in the solution for businesses to achieve compliance

accounting world. Their implementation comes in an ever-evolving world of accounting

with several challenges and complexities regulations. Hamilton has built-in functionality

because of the magnitude of postpaid that solves both the IFRS 15/ASC 606 and

contracts and lease contracts. The IFRS 16/ASC 842 regulatory needs. There is

Telecommunication industry, in particular, is no need for new software installation as it is a

challenged by several complexities that include simple SAP add on to fulfill complex IFRS

millions of postpaid contracts and tens of requirements and you can leverage existing

thousands of lease contracts that have data SAP system and infrastructure. Hamilton is

scattered across a variety of systems making it very cost effective and can be quickly

difficult to obtain a holistic view. Complexities implemented in a time frame of between 3 to 6

arise when there are multiple combinations of months with a non-disruptive approach. It is a

contract modifications with customers and robust product with rich features and

contract remeasurement with lessors. There functionalities with solid support from the

are usually several complex business cases product headquarters. Hamilton is

that are constantly evolving. The data that is implemented by high-profile consultants with a

available as raw data, may not be adequate for vast knowledge of the telecommunication

meeting IFRS requirements. Business sector and using a unique IFRS

processes, IT systems, accounting processes implementation methodology. It requires very

and internal control will need changes as the minimal end-user training. In a nutshell, the

new IFRS 15 and 16 standards require beauty of Hamilton engine is SIMPLICITY, we

extensive disclosure of financial statements. run simple.

Confidential and proprietary materials for authorized Cognitus Consulting LLC

personnel and outside agencies only. Use, disclosure or distribution of this material is
not permitted to any unauthorized persons or third parties except by written
agreement.
 Benefits
Mission Accomplished: Full IFRS 15 and IFRS 16
compliance with ease

After a few months of implementation, the auditor verified all the results and confirmed
that Hamilton Engine meets all IFRS requirements and went live successfully and highly
appreciated by the finance team. Hamilton Engine is a proven solution which helped the
entity meet the IFRS 15 and 16 compliance deadline on time (1st January 2018 and 1st
January 2019 respectively), with a minimum cost of implementation. It became the first
telecommunication operator who successfully implemented both IFRS 15 and 16
together without any disruption to the business. Business users now had a holistic view
and the integrated data of postpaid contracts and lease contracts. Hamilton has
unlocked new insights as the result of new data for IFRS requirements and provides
better control on postpaid contract accounting and lease contract accounting, auditing
and makes it easy to track and manage all these changes.

Confidential and proprietary materials for authorized Cognitus Consulting LLC

personnel and outside agencies only. Use, disclosure or distribution of this
material is not permitted to any unauthorized persons or third parties except by
written agreement.