Visual Lease for IFRS 16 Compliance
Organizations are racing to become compliant with IFRS 16, and need lease accounting software to accurately and efficiently organize their lease portfolio and generate financial reporting and disclosures.
IFRS 16 requires companies to recognize a finance right-of-use asset and lease liability for all leases that do not qualify as short term or low value. Short term leases are those that are 12 months or less, and low value leases are generally leases that have an asset with a value of $5,000 or less when new.
Visual Lease will help companies capitalize their leases in accordance with IFRS 16 and provides the correct right-of-use asset and lease liability, as well as the correct straight line amortization based on the asset life or lease term. Visual Lease will also prepare proper disclosures for leases that are capitalized, as well as the short term and low value leases that do not have to be capitalized on the balance sheet.
After your first reporting period, staying compliant with IFRS 16 will require you to keep your lease information accurately updated. Has anything changed in your lease? Has the CPI or other index gone up or down? Have you changed your assessment of whether it is likely that you will exercise an option to extend your lease? Have you expanded or contracted your space? This information is critical as it will change your financial disclosures.
Visual Lease’s lease administration software collects and manages critical lease information such as payment dates, options, rent steps, CPI escalations, TI reimbursements, security deposit maturation and more. These changes are essential for your disclosures.
Visual Lease also allows you to create critical date alerts, which gives you greater reliability for meeting key lease dates, and ensures the accounting team is included in important decisions.
How much money are you wasting every year by overpaying CAM and other lease-related operating expenses? Visual Lease’s Audit Manager ensures that all charges are accurate and in accordance with lease terms.
With Visual Lease disclosure reporting, your lease data is quickly and easily organized and summarized, and supported by corresponding journal entries. Reports also provide a complete breakdown of lease data over time with robust reporting tools.
Visual Lease provides the ability to connect and share lease administration and accounting data between hundreds of other business systems including accounting (GL / AP / ERP systems), space management, facilities, file and email systems. Visual Lease acts as a hub for all data relating to your leases and passes relevant data to these systems.