The new view is that the lessee (the company renting or hiring an asset) has a right to use the object for a specific period of time and at the same time an obligation to pay for this right.
The concepts of financial and operational leasing will disappear. But of course there are exceptions, for contracts shorter than 12 months and those concerning assets of lesser value. When should I start? IFRS 16 must be implemented by 31 December 2018 at the latest, before the start of the new fiscal year.
ADDEDO’S IFRS 16 SOLUTION
Watch our movie about Addedo’s solution for gathering and presentation of data according to IFRS 16 standards above (Swedish only).
The movie covers:
• Problem description and mapping
• IFRS 16 and interpretations of the standard
• How to implement Addedo’s solution
OTHER IFRS 16 SOLUTIONS
Aaro Lease Registry is a product with which you can easily monitor and determine what effects IFRS 16 will have on your business, business area or group. The AARO Lease Registry supports you in the work of IFRS 16, ensuring that the company becomes IFRS 16 compliant in time before January 1 2019.
EFFECTIVE MANAGEMENT OF CONTRACTS
With AARO Lease Registry you can set up a contract database. The information is manually registered or imported and all necessary calculations are then automatically handled on both the balance sheet and income statement. There is also the possibility to generate a journal for booking back to an ERP system if desired.
INTEGRATE WITH AARO OR USE AS SEPARATE MODULE
AARO Lease Registry can be used freely or integrated with AARO. If the product is integrated with AARO, all effects on assets, liabilities and income statements are automatically recorded in the balance sheet and income statement in a separate accounting type. This allows you to run reports for balance sheet, income statement and key figures with or without IFRS 16 effects.Download our white paper
We offer a solution from IBM with data entry in Planning Analytics. It’s more suitable if you have many (thousands of) contracts.
Listen to IBM:s web seminar where they present their IFRS 16 solution. It contains all the important components, such as:
• Contract maintenance
• Full retroactive method or simplified method
• Classification in P/L of leasing costs into depreciation and interest costs
• Classification in cash flow analysis.
The IFRS 16 solution in IBM Planning Analytics helps companies throughout the process from gathering of contracts to an output, consisting of supporting documents for thee accounting. The solution provides the users with a simple and flexible way of reporting, analyzing, simulating and planning their leasing contracts. IBM Planning Analytics is a world leading solution for operations management, offering flexible adaption of the IFRS 16 solution and an option to broaden the scope to other areas.
During the demonstration we’ll also show how IBM Planning Analytics can be used for an efficient reporting and analysis of the contracts from an aggregated level down to the individual contract. So take the chance to discover how IBM Planning Analytics can help you in your work with IFRS 16.
*Click the link to listen, Swedish only.Webinar - IBM Planning Analytics