IFRS 16 / AASB 16 is the lease accounting standard that has now been in place for a full reporting year and companies are feeling the pain of not having robust systems in place to maintain compliance with the standard. The 'new' standard supersedes IAS 17 Leases (and related interpretations)and will require lessees to account for their leases under a single accounting treatment.
What is IFRS 16?
To recap the new accounting standard brings almost all leases ‘on balance sheet’ and recognising a right of use asset and a lease liability arising from the agreement. This whitepaper will provide you with a fact sheet on what constitutes a lease under the new IFRS 16 accounting standards. It will answer all your questions related to:
- What is changing
- Who will be affected
- The impacts and benefits of IFRS 16
- How to prepare
The UK’s independent regulator of auditors, accountants and actuaries - the Financial Reporting Council have released their review of IFRS 16 /AASB 16 disclosures, reflecting on the first full year of application of the accounting standard. It has identified some significant areas for consideration and improvement which this article will discuss. You can read more about the findings here.
Introducing LOIS - A solution to enable AASB 16/ IFRS 16 Compliance
Lease Optimisation Information System 'LOIS' is a leading innovation in lease portfolio management. LOIS is a hassle free accounting solution that delivers all the transition tools and functionality needed to extract, validate and report on all the critical lease data required for full compliance with both IFRS 16 and FASB ASC 842. The short video below will explain why this might be solution your organisation needs.
Watch our video
The solution tackles the more challenging aspects of lease accounting compliance with an array of new features, tools and automated processes that make confronting even the most complex portfolios effortlessly simple with:
- An Intuitive interface with a full overview at various levels.
- Comprehensive IFRS 16 functionality including forecasting, modification & journals.
- Full asset & lease management functions.
- The ability to export and Import with ease, view and analyse advanced search data.
Standard Functionality includes:
- IFRS 16 Transition and Report: LOIS can handle all transition methods and exemptions with ease. Run different scenarios so you can model each transition method and assess the impact on key financial statements.
- All leases & data in one place: The user dashboard provides you with a consolidated overview of all the active leases within your organisation.
- Simple to add leases: Upload your lease data with ease, LOIS can manage Property, Fleet and IT equipment. Ensure all your critical lease information is centralised in one place.
- Manage lease lifecycle: All in-life lease amendments are catered for, adhering to the IFRS 16 and FASB ASC 842 standards covering all modifications
- Amortisation and depreciation schedules: LOIS will also generate the complex calculations and all transition options with ease, whilst providing full general ledger functionality and a comprehensive audit trail.
- Workflows, Multiple Users & Hierarchy: Create multiple user accounts with customised access levels so you can work with the real- time data you need. LOIS is designed for everyone in your organisation who is involved with leasing.