Lease accounting and lease management designed for the retail sector
Managing your retail lease portfolio
Most retailers are prolific lessees with a large number of leases and sub-leases across their flagship stores and shopping mall, airport and regular outlets. We know how important it is to manage your portfolios as closely as possible – especially when it comes to making informed decisions around growing your business.
With leases, sub-leases and franchise agreements stored in all manner of places, it can be difficult, if not impossible, to produce accurate, useful, consolidated reports on your retail property and asset portfolios and to management them efficiently.
Changes to lease accounting (IFRS 16)
If lease management wasn’t challenging enough, retailers are faced with the adoption of IFRS 16 (AASB 16), the new lease accounting standard – effective 1 January 2019, which could make leases the most material item on your balance sheet.
The new requirements will directly impact the financial performance and value of your company so it’s essential you get it right. We expect retailers to see an increase in recognised assets and liabilities, more leases 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/EBITA ratios.
Given the complexity involved, we recommend you invest in a lease management and lease accounting platform that is
IFRS 16 compliant.
Nomos One can help
Nomos One is the complete, cloud-based, lease management and lease accounting software solution for the management of leases, sub-leases, licences, sub-licenses, easements, grants, resource consents and general contracts.
With our software, you’ll benefit from automated calculations, a clear simple dashboard, event reminders, intuitive workflow, custom reports and fields, and the ability to automatically generate legal documents.
Our robustly tested IFRS 16 module automatically calculates right-of-use assets and lease liability and generates journals, depreciation and interest schedules, giving you complete confidence in your IFRS 16 compliance.
“Before Nomos One we had everything on a spreadsheet and that spreadsheet could be opened up and edited by a number of people, which is not ideal when there’s two, three or even four versions operating around the company. It was becoming very hard to work out what was current and what wasn’t.
We were excited to see all of our lease information, including scanned documents, upcoming events and reports loaded into the system. For us, this has meant we have had visibility of all upcoming events across our portfolio, access to documentation when we need it, and [our lawyers] have been able to keep visibility over our files, ensuring they are up-to-date”.