Are You Ready For The New Lease Accounting Regulation Under ASC 842 & IFRS 16?
What is IFRS 16
IFRS 16 pertains to how leases are recognized, measured, presented and disclosed. Issued January 2016 with go live date of January 1, 2019, IFRS 16 sets out to ensure that lessees and lessors are providing information that most accurately represents the lease transaction. The standard seeks to prevent off-balance sheet operating leases by establishing set principles.
Why IFRS 16
IFRS 16 brings more transparency to lease obligations by accounting for operating leases on the balance sheet. The ‘off-balance sheet leases’ represented a significant value and meant that investors and analysts did not have the full information on the financial position of a company.
How to get Compliant
By establishing IFRS principles for lease recognition, measurement, presentation and disclosure through
Requiring a full lease inventory
Putting leases on the balance sheet
Operating lease expenses are now depreciation and interest expenses
Front loading lease expenses
Changing cash flow presentation
Including variable payment based on an index in the lease liabilities
Separating lease, non-lease needed and service contracts off the balance sheet.
WHO DOES IFRS 16 IMPACT THE MOST
Create and manage the inventory of leases. Manage the complexities of data collection, storage, and maintenance.
Enhancing finance systems to fill collection, calculation, reporting and disclosure requirements.
Finance and accounting, IT, procurement, tax, treasury, legal, operations, corporate real estate and HR.
Insurance, Banks, Energy, Telecom, Media, Pharma, Construction, Retail, and Distribution.
LEASE ACCOUNTING: ASC 842 & IFRS 16
Delbridge in association with CCH Tagetik helps you transition to the new leasing regulations and get compliant quickly. Our Lease Accounting solution provides an automated solution that allows you to easily manage the large volumes of leasing data by providing data collection, calculations, reporting and disclosures according to the new regulations. See our capabilities below.
POWERFUL CALCULATION ENGINE
LEASING DATA MART
A PRE-BUILT SOLUTION
MODELLING AND CALCULATION ENGINE
DISCLOSURE AND REPORTING
Mandatory Compliance Date is Approaching Fast! Create an Action Plan and Prepare Processes for the New Regulation.
ASC 842/IFRS 16 LEASE ACCOUNTING SOFTWARE
DOWNLOAD THE SOFTWARE SELECTION CHECKLIST
When selecting software, it can be difficult to predict the exact capabilities needed for your team’s success. A software checklist can help you determine key factors to consider when looking for a lease accounting software.
With the comprehensive checklist, you’ll know exactly what ASC 842 and IFRS 16 lease accounting features to look for when evaluating a vendor’s Compliance Standards, including: