IKEA

The situation

IKEA's Saudi Arabia operation runs a portfolio of leases that spans flagship stores, distribution centres, fulfilment hubs and back-of-house spaces. Each contract carries its own escalation profile, renewal options and component mix — and the IFRS 16 reporting calendar doesn't slow down to accommodate them.

The challenge

At this scale, manual abstraction becomes a quarterly fire drill. Spreadsheet-based ROU calculations create disclosure risk, modifications and reassessments are difficult to track in real time, and the audit trail back to source clauses becomes fragile every time the portfolio changes.

The solution

ContractHive replaced the manual abstraction process with AI-powered extraction across IKEA's KSA lease portfolio. The platform handles initial measurement, modifications, remeasurements and terminations in a single engine, generates the full IFRS 16 journal-entry stream, and produces audit-ready disclosures linked back to the source clauses they came from. The finance team reviews AI-extracted values with confidence scores instead of re-keying contract data by hand, and group reporting consolidates store, DC and corporate leases on the same data layer.

Outcomes

• 100%
  Audit-grade traceability from disclosures back to source clauses
• Multi-entity
  Consolidation across stores, DCs and back-of-house
• AI abstraction across mall, freestanding and warehouse leases
• Modifications and remeasurements handled in the same engine