# What does compliance mean?

This is a word used a lot, how does Cradle apply to the accounting standards?

##### Post Metadata
- Posted at: about 6 years ago
- Net upvotes: 2


## Comments
### Comment 1

Good question! All solutions are claiming "compliance." To comply with the standard; there are several inputs you need to ensure you're on top of

 1)  Accounting judgements -  are you correctly identifying the contract within the right standard? Is this discount rate appropriate? The list goes on. If you get this wrong, it doesn't matter how well the numbers are calculated! 

2) Calculations: This is where the software comes in, an excellent area to test if you're software is compliant is input the IFRS 16 decrease in scope examples. If the numbers and journals match, that's a pretty good start.
 
3) Disclosures: compare the disclosure report to example disclosures. KPMG has a great of disclosures under the new standard. 

##### Comment Metadata
- Posted at: about 6 years ago




## Related Product
[Cradle Accounting](https://www.g2.com/products/cradle-accounting/reviews)

## Related Category
[Lease Accounting](https://www.g2.com/categories/lease-accounting)

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