“Based on the number of leases and current level of disaggregation, combined with the level of understanding of IFRS 16 required to properly account for leases, we determined that it would be completely impractical to track the ROU and Lease Liability without a lease specific software.”
Weston Curtis Sr. Corporate Accountant, Boart Longyear
Free Comparison Guide for IFRS 16 Software Solutions
Find out the top 15 questions to ask vendors and ensure you make the right decision for your business
The technical lease accountants at LeaseQuery have put together this list of 15 important questions that you can ask vendors while you’re assessing IFRS 16 solutions. In addition, it includes a detailed list of features and functionalities that are needed for compliance with IFRS 16.
Enter your information into the form to get your free copy today.
Key Features Needed in IFRS 16 Compliance Software
There are many companies out there offering lease accounting solutions, but their basic packages only get you part of the way toward compliance. For long-term compliance, you need to implement a comprehensive system built by accountants.
LeaseQuery is the best-rated IFRS 16 compliance software and is preferred by CPAs. It is a streamlined lease accounting solution that offers several key features, including the ones below.
Support for Your Internal Controls
With so many new leases on your balance sheet, it’s important that the system supports your internal controls. Data entry validation (one person enters a lease and another is required for approval) and role-based access (control over how much access users have) prevent inaccurate information from being introduced into the system.
Translation and Remeasurement
IFRS 16 requires lessees to remeasure the lease liability and right-of-use asset when there are changes in future payments. For all necessary leases, such as those based on CPI, the system you choose should automatically perform this function.
Does the software accurately calculate and report on your leases in the correct currency? Whether your lease payments are in British Pounds, Euros, or Japanese Yen, your IFRS 16 solution should perform this function without issue.
To save you time and ensure your accuracy, your lease accounting software should be built with the complexities of IFRS 16 in mind. Practical expedient elections, borrowing rate charts, and useful life charts are just a few of the data intelligence features that you’ll need.
Get LeaseQuery Pricing Today
What to Look for in a Solution
The provider you choose for IFRS 16 should be well-versed in the standard. They should have in-house accountants who have a deep understanding of the nuances of IFRS 16 and the key differences from ASC 842. Be sure to take the following factors into account when choosing a solution:
Cloud-Based and Searchable Lease Database
- Access your leases in a centralized database that’s available anywhere there’s an internet connection
- View audit trails, lease entries, modifications, and approvals at the click of a button
- Real Estate, IT, and other departments that deal with leases can efficiently access the documents that they need
- Grant read-only access to your auditors
Secure and IT Approved System
- Data validation ensures all modifications to leases are approved before they are saved
- Multiple levels of access ensure that users can only view the information they need
- Your internal controls are reinforced in accordance with the Sarbanes-Oxley (SOX) Act
Automation, Disclosures, and Customizable Reporting
- Automation of critical alerts and reports helps you keep IFRS 16 deadlines in mind
- Avoid missed payments, overpayment, and other issues with critical alerts for payment dates, renewals, cancellations, and more
- Both canned and fully-customizable reports make it easy to disclose your lease information
- All reports and disclosures needed to meet new requirements under IFRS 16, including additions to ROU assets, total cash outflow of leases, and interest expense on lease liabilities
Featured Blogs for IFRS 16
Updated on Feb 17, 2020