The new International Financial Reporting Standard on leasing (IFRS 16) is effective for accounting periods beginning on or after 1 January 2019.
This will have a significant impact on lessees, especially those with 50 or more leases operating in the transportation, infrastructure, retail, mining, telecommunications, retail, hospitality, education, corporate and government sectors.
Many companies significantly underestimate how complex the transition and ongoing reporting requirements are. For finance teams, month and year-end are already daunting enough – but now they’re about to become more difficult and time-consuming.
That’s why the Big 4 accounting firms are recommending lessees invest in IFRS 16 compliant lease accounting software. Despite mounting complexity, some finance teams are reluctant to look at software options. We’re going to share five things – well actually eight things – they will love about IFRS 16 compliant lease accounting software. Trust us, there are more than eight things, but we’ve selected some that will resonate with anyone tackling IFRS 16.
5 things you’ll love about Nomos One lease accounting software
1. You’ll never do manual debits and credits for lease accounting again.
2. You’ll have a clear audit trail making audit time straightforward.
3. IFRS 16 calculations and formula are taken care of for you – and you can’t break them!
4. You’ll be able to produce journals, draft balance sheets, depreciation and interest schedules at the press of a button.
5. All of the data you need (and the supporting documentation) will be held in one shared repository.
We’ve thrown in three more for good measure.
6. Cloud-based software means you’ll be able to access your account anytime, anywhere.
7. Lease event reminders mean you’ll never miss a lease event again – greatly reducing the risk of missed or inaccurate payments and even breaches of contract.
8. You can finally say goodbye to the duplicate, inaccurate and missing data that plagues homegrown and multi-software systems.
We have no doubt many, if not all of the above, will appeal to you if you have anything to do with IFRS 16 compliance.