INDUSTRIES
Managing your education lease portfolio
Education facilities have many different leases, licences, easements and contracts to track, including leases for land, buildings, fleets of vehicles, office equipment and other bespoke items. We know how important it is to manage your portfolios as closely as possible – especially when it comes to keeping track of important dates and rates.
With leases and subleases stored in all manner of places, it can be difficult, if not impossible, to produce accurate, useful, consolidated reports on your property and asset portfolios and to manage them efficiently.
Changes to lease
accounting – IFRS 16
In addition to the regular challenges of lease management, businesses are faced with the introduction of IFRS 16. IFRS 16 is the recent lease accounting standard effective from annual reporting periods beginning on or after 1 January 2019. The change to lease accounting could make leases the most material item on your balance sheet.
The new requirements of IFRS 16 will directly impact the financial performance and value of your company. It is essential to adhere to the IFRS 16 standards in your business and education operations. We expect that the education sector will experience an increase in recognised assets and liabilities, more lease expenses recognised in earlier periods of a lease and less in later periods, a shift in lease expense classification and amortisation, and an increase in net debt/EBIT/EBITDA ratios.
Given the complexity involved in the introduction and additional requirements of the ongoing accounting of leases under IFRS 16, we recommend those operating in the education sector invest in a lease management and lease accounting platform which can help you achieve IFRS 16 compliance. Our software will ensure that your portfolio of leases is up to date with easily actionable notifications that help you meet protocol milestones with confidence.
Nomos One can help
Nomos One is a comprehensive, cloud-based, lease management and lease accounting software solution that is designed to accommodate a large range of leased assets, including those commonly used within the education sector. This is the lease accounting and management software your business needs to ensure the efficient management of leases, subleases, licences, sublicenses, easements, grants, resource consents and general contracts.
Nomos One offers our clients a number of benefits that will save your business time and effort. Our lease accounting software offers advantageous features for many businesses, including automated calculations, a coherent and straightforward dashboard, event reminders, a user-friendly workflow, custom reports and fields, and the ability to automatically generate lease documents.
Our robustly tested IFRS 16 modules automatically calculate right-of-use assets, lease liabilities, depreciation and interest expenses, and generates the resulting journals accordingly.
