New IFRS 16 Lease Accounting
How will new IFRS 16 lease accounting differ from the traditional approach to lease management? The new IFRS 16 leasing standard constitutes one of the first updates since the conception of lease accounting standards in the 1970s — it is considered a major shift in the way lease accounting is managed.
When you are considering new IFRS 16 transition options to help you make the switch from the older regulations, there is only one solution: Visual Lease. Our team of professionals have created a user-friendly, customizable, responsive software that eliminates hassle and worry for your transition to new IFRS regulations.
Instead of having to dig through individual documents or manually organize your lease information, why not leave the heavy lifting to Visual Lease? Our automated system improves your business operation by fully integrating with your existing enterprise software.
How will the new IFRS 16 lease accounting requirements affect your company?
Lessee information will be heavily affected by the new IFRS 16 leasing standard. Lessees will now have a single accounting model for all leases, both financial and operating, with only two exemptions in “low-value assets” and short-term leases (those less than 12 months).
Challenges may arise for many of our clients with separating lease and non-lease elements of business agreements. Non-lease components are identified and accounted for separately than lease-related elements.
Visual Lease helps with this initial recognition and measurement through an automated system that “tests” your documents to determine if they contain a financial (capital) or operating lease. With the help of Visual Lease, your team can quickly identify obligations and right-to-use assets, in addition to enjoying benefits such as:
- Automated calculations to determine the present value of assets
- Specialized lease accounting that includes percentage rent, lessor/sublease and sale-leaseback, among other systems
- Calculated annual and monthly expenses associated with each lease
- And more
When you are preparing your team for compliance with the new IFRS 16 lease accounting standard, you can rely on Visual Lease to serve as your reliable partner in data and information management. Let us support you through this regulatory transition! Click now to get started.