SOLUTIONS

IFRS 16 Lease Accounting

The trusted solution for IFRS 16 (AASB 16) reporting.

IFRS 16 calculations

Automatically calculate right-of-use assets and lease liability across your portfolio. Create asset classes and apply bulk settings across agreements with similar characteristics and easily save discount rates, rent increases, future payments, make-good payments and incentives against your portfolio.

IFRS 16 Initial Measurement

  • Automatically calculates the present value of the expected future lease payments
  • Accommodates term options into lease term calculation
  • Gives option to exclude exempt leases (short term or low value)
  • Adjusts right of use asset by a restoration / make-good provision or any direct costs incurred
  • Incorporates any purchase options, termination payments and residual value guarantees
  • Allows for revaluation of leases below fair value (peppercorn leases)
  • Provides ability to set interest rate for each lease contract

IFRS 16 Subsequent Measurement

  • Automatically depreciates right of use asset over term of lease
  • Automatically remeasures lease liability and right of use asset for completed lease events
  • Supports ability to update interest rate at an agreement level
  • Allows for other variations and lease modifications
  • Adjusts right of use asset for any identified impairments
  • Resets the lease accounting calculation for business combination or assignment events

IFRS 16 Reporting,
Journals & Disclosures

Generate draft balance sheet, profit and loss statements and cash flow statements, as well as disclosure reports and journal data that can be easily exported and uploaded to your general ledger.
Financial reporting of lease transactions will update as and when lease events are completed.
Journal
Report

Detailed list of lease accounting transactions, customised to your financial reporting period and can be formatted to best fit your accounting requirements.

Disclosure
Report

This shows the movement at a portfolio (or part portfolio) level in the lease liability and right of use asset, as well as a maturity analysis of expected undiscounted cash flows.

Agreement Balances
Report

Summary of how lease transactions impact the lease liability and right of use asset balances on an agreement-by-agreement basis.

Financial Statements Report

Details how the profit and loss, balance sheet and cash flow statement accounts are impacted by the lease transactions during the period.

FAQs

What is lease accounting?

Lease accounting is the recognition of the transactions and balances associated with lease contracts and events for a business’ financial reporting. Both lessors and lessees are required to account for lease transactions, though each in different ways. With the introduction of IFRS 16 (AASB 16), lessees are required to recognise a lease liability and a right of use asset, while little has changed for lessors, who continue to differentiate between operating and finance leases.

What is lease accounting software?

Lease accounting software is a tool that empowers enterprises to manage their lease portfolio more effectively. Lease accounting software is designed to centralise information and effectively automate previously manual administrative tasks. Lease accounting software assists businesses in managing their lease and accounting regulations. 
The software eliminates the requirement for paper trails, and most quality software will set reminders for the business’ upcoming financial milestones to ensure that critical dates are never overlooked. 

What is IFRS 16?

Under IFRS 16, lessees are required to recognise a lease liability for the future expected lease payments as well as a corresponding asset that represents their right to use the leased asset.
The lease liability is based on the present value of the future fixed and in substance fixed lease payments. The liability is an amortising liability whereby interest is accrued and expensed over the life of the lease.
The right-of-use asset is equal to the lease liability at the beginning of the lease liability calculations (subject to any prepayments, initial direct costs incurred, and estimated restoration obligations) and is depreciated on a systematic basis over its useful life.

Who needs lease accounting software?

Essentially, lease accounting software is designed to meet the needs of finance teams, accountants, auditors and property managers. 
Lease accounting software solutions may be necessary for anyone who has to manage leasing activities, the financial impacts of leasing, and comply with lease accounting standards. This includes property investors, tenants, leasers, real estate agents, small business owners and accountants. 
Both tenants and the lessor can utilise lease accounting software to manage all types of real estate assets. Quality, reliable and advanced lease accounting software has become crucial in recent times for both lessees and lessors to assist towards compliance with ever-evolving lease specific accounting and depreciation standards. 

What is the best lease accounting software?

We may be biased; however, we vehemently believe that Nomos One encompasses everything that the best lease accounting software embodies. 
Nomos One presents a trustworthy, effortless lease accounting software solution. Ideal for property, equipment, vehicles and all other types of assets, Nomos One is the best lease accounting solution because it is advanced, customisable, flexible and reliable. With Nomos One, you are offered critical date alerts, equipment lease management, amortisation schedule, capitalisation reporting, and the ability to adapt the software to meet your lease accounting circumstances’ unique demands. 
If you want to learn more about our leading lease accounting software solutions, do not hesitate to contact our friendly team. Nomos One is designed to simplify and streamline laborious administrative processes – from our software solutions to our exceptional customer service; we’re here to ensure your experience meets and exceeds all expectations. Request a demo today. 

Ready to get started?

Speak with one our IFRS 16 experts today
Book a demo