Is the thought of another new standard upgrade starting to do your head in? You’ve just barely got through IFRS 15 and now you’re having to think IFRS 16: Leases too?
Transitioning to IFRS 16 is proving to be challenging from a data collection view point. Many companies who have not had a centralised leasing data base are having to collect and capture multiple points of data to provide a view of the transitioning impacts of IFRS 16. Some companies are finding that they have records of certain types of leases, such as property, but then are having to gather data on other leases from different divisions across the business. Remember of course, that the standard scope of a lease encompasses a much broader review of all contracts to determine if there is a lease, even within a possible service arrangement.
The standard allows for a number of transitioning provisions to assist companies through this transition period. Understanding the benefits of these transition options is often hampered by defragmented lease data and can only be fully understood until you have a complete lease database with which to work.
Those entities that have started considering the changes that IFRS 16 will bring to their business processes and reporting have begun to realise that time is running short. With the new standard effective for years ending after 1 January 2019, the companies are now considering budgeting requirements which need to be in place during the current year.
The time to act is now.
Quadrent is Australasia's leading and most trusted equipment financier and lease portfolio software provider. We enable you to deliver your technology solution via a leasing structure, and manage and report on your lease & asset portfolio for compliance with IFRS 16. Find out more about our services.
LOIS provides you with a consolidated view of all leases within your business structure and full IFRS 16 compliance, whether it be one entity or a global corporate. LOIS refers to Quadrent’s Lease Optimization Information System, which is a fully integrated portfolio and asset management tool for all your IFRS16 lease accounting compliance. We operate it under a master agreement. Plus, we’re the only supplier in Australasia. Read more about LOIS.
If you're interested in understanding more about IFRS 16 Compliance and LOIS, here are a couple of resources we can provide:
- Read more about IFRS 16 considerations and COVID19.
- Read about LOIS features and benefits and the clients that are already on board with us
- Explore the pros and cons of using spreadsheet applications such as Excel for the transition to IFRS 16 with this short whitepaper (15 minute read).
- Let our recent survey results from LOIS customers demonstrate the value of the product (3 minute read)
- Understand the pros and cons of leasing business assets with our whitepaper (15 minute read).