Stay compliant with the IFRS 16 / ASC 842 / AASB 16 standards using lease accounting system

It is possible to meet the requirements of IFRS 16 / ASC 842 / AASB 16 accounting standards without any headaches. But you need lease accounting system which provides tools that help in every step of everyday tasks. System lets you manage your multiple lease agreements with a large volume of data efficiently and easily comply with IFRS 16 / ASC 842 / AASB 16 accounting standard.

Possible integration with the General Ledger

Soft4Lessee financial accounting system could be integrated with the company‘s General Ledger. That means you will have required G/L transactions at each due date and at the end of the accounting period, could download G/L transactions in detail or at summary level and feed them into your general ledger system. These and even more great features are built specifically to meet needs of the lessor and make employees‘ work more efficient.

Using General Ledger integration with the financial accounting system, the company can have an automatically produced file at the end of each accounting period. The file will automatically be uploaded into the accounting system. And if you are using Microsoft Dynamics NAV or Business Central as your ERP system, then G/L integration is totally seamless. Financial accounting system helps to facilitate additional information regarding the scope of lease activities in your financial disclosures.

Accounting system provides a rich tool set

Financial accounting system comes with a great set of tools, which helps in everyday tasks that previously took away a few hours from your employees.

Firstly, automated tools could calculate lease liability based on the given parameters. The system calculates the initial measurement of the lease liability at the commencement date and subsequent measurements at the end of each reporting period (e.g., monthly, quarterly or yearly). If the circumstances change, system will automatically adjust the lease liability.

Secondly, the initial measurement of the right-of-use asset could be calculated automatically too. It consists of lease liability, lease payments made on or before the commencement date of the lease, any initial direct cost incurred by the lessee and estimate of cost of dismantling/restoring the asset at end of lease. If the lease liability is re-assessed, the RoU asset value changes accordingly.

Automated helper for preparing your financial disclosures

The Soft4Lessee provides ready reports which you need for your financial reporting and helps to prepare additional information for IFRS 16, ASC 842 or AASB 16 financial disclosures, so you will not have to worry about complying with lease accounting standards anymore.

Talking about financial disclosures, it is mandatory to present the statement of financial position, profit and loss statement and cash flow statement once a year. All of these helps to identify the financial status of your company. In the statement of financial position, you have to present right-of-use assets, per asset category (separately from other assets) and lease liabilities, separately from other liabilities. In the profit and loss statement, you must present the interest expense on lease liability and the depreciation charge for the right-of-use asset. And in the cash flow statement, it is required to present separate cash payments for the principal portion of the lease liability and interest portion.

These three mandatory statements are readily available from financial accounting system for reporting or uploading to other general ledger systems you may use.

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