Compliance with the IFRS 16 lease accounting standard, improves the efficiency of lease management by streamlining and automating the processes
The International Accounting Standards Board (IASB) has published IFRS 16 — a set of new standards for leases. Lessees are now required to apply IFRS 16 to leases, which, previously in accordance with IAS 17, were classified into operating leases and finance leases and therefore came under different accounting measurement principles. It marks one of the most profound policy changes in recent years, with far-reaching implications for a wide variety of industries ranging from retail chains, airlines and transportation to even banking and insurance businesses.
The transition to IFRS 16 will bring significant challenges to the financial management of companies. Take the maintenance of lease contract information for example. In accordance with the new standards, measurement of right-of-use assets and lease liabilities involves very complex calculations, and each contract requires individual tracking of changes and settlements to confirm the impact on financial assets and liabilities. In the event of a large number of leases, the following up of relevant businesses by financial staff entail huge amounts of effort and resources.
Routine lease contract management tasks such as registration, lease status tracking, modifications, settlement and termination.
For each lease contract, the IFRS 16 calculation engine automatically calculates information related to right-of-use assets and lease liabilities.
Registration, modification and disposal of right-of-use assets, and the handling of assets in depreciation periods.
IRR calculation, discounting and recognition of lease liabilities, interest accrual, lease payment handling, lease modifications and liabilities amortization.
Provides pre-set reports such as lease contract list, right-of-use assets depreciation schedule, lease liabilities schedule, and lease payment schedule; for special-purpose analysis, the system also provides a BI reporting tool for user-defined reports and dashboards.
Works seamlessly with Kingdee ERP and supports integration with third parties' financial management systems.
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