Great! You’ve bitten the bullet and started preparing for IFRS 16 implementation. First stop – find the leases and supporting documentation. You’ve asked around, but the pile is still looking a little light.  Where else can you look? Here are a few suggestions:  

1. Contract management system

Whether it’s a specialised document repository for your legal agreements, folders in a drive, or a cloud-based tool like Dropbox – your legal team will have a system for storing and/or managing legal documentation. Ask them to run a search, or if needed, hunt manually through their system for anything related to leasing. Make sure they know you’re also looking for contracts with embedded leases.

2. Procurement system

There’s a good chance some of your leases, whether they’re for property, IT equipment or vehicles, were initially processed through your procurement system and assigned a purchase order number. The purchase order should include the name, address and phone number of the lessor, and the internal ‘business owner’ of the lease, who may have the lease agreement on file.

3. Property or maintenance team files

If you have a property or maintenance team they should be your first port-of-call for property leases. They may have the original lease agreements and keep track of lease obligations, rent reviews and renewals.

4. Accounts payable and/or financial reporting spreadsheets

Pro tip: Ask your accounts payable team to run a report for any recurring payments. They could be paid monthly, quarterly or annually. Look out for details on the invoice that relate to leasing and who signed it off for payment. The approver may be the business owner and may also hold the lease agreement.    

5. IT Asset management system

Your organisation will have a comprehensive record of your IT equipment (printers, laptops, mobile devices, computers) including serial numbers, models, warranties, service contracts and whether you own or lease each item.  They may hold the original lease agreement or be able to point you on the team that does.

6. Fleet management software

If your organisation has a large fleet of vehicles, you may have fleet management software. If not, there’s probably a person in the organisation tracking fleet information in a spreadsheet that should include a description of the vehicles in the fleet, ID numbers, service history, lessor information – and if you’re lucky, they may have a copy of the master lease agreement. If not, they should be able to point you in the direction of the team that does hold it.

7. Third party suppliers and contractors

Email any third parties you can think of who may hve something to do with leases for property, IT equipment, contracts, company cars, or office equipment. Some suggestions include law firms, IT providers, property management firms, landlords and leasing companies.  

Next steps

Check out the IFRS 16 module 
Check out Nomos One’s lease management features
Schedule a personalised demo of Nomos One
6 months out – 5 things you need to be doing now to prepare for IFRS 16