OIXIO IFRS16 for Lessee

Ensure compliance with IFRS 16 efficiently

Finance/accounting department of your business could face the challenge that ensuring compliance with IFRS 16 standard could be a very time-consuming process:

• keeping hundreds or thousands lease agreements data on spreadsheets;
  
• recognize assets and liabilities for each of the leases manually to the General Ledger;
  
• calculate and reflect the effect of the changes/amendments in the agreements;
  
• finally prepare financial statements in accordance with IFRS 16.
  

All these processes related to lease accounting could be managed in this easy to use solution that helps the lessees to reduce finance/accounting department workforce time spent on administrative work to ensure compliance with IFRS 16.

Solution includes important features and enhancements, that are required by lessees in order to support lease agreement accounting according to IFRS, starting with its signing, schedule calculation, amendments process and up to its natural ending or termination.

Smoothly integrated with other "native" application modules

• Financial Management / General Ledger
  
• Fixed Assets
  
• Purchase and Payables
  

Key features & functionality

Lease Contract Data Storing and Schedule Calculation:

• Define individual lease conditions per contract.
  
• Calculate separate schedules and present value for each RoU asset.
• Payment split into principal and interests’ parts.
  
• Supported payment periods: monthly, quarterly, half year, annual.
• Contract workflow management.
  

RoU Asset Management:

• RoU assets management using standard Fixed Assets functionality with its features and reporting possibilities.
  
• Automated Fixed Assets cards creation and schedule calculation in case of agreements with multiple items of lease property.
  
• RoU depreciation calculation.
  

Contract Amendment Management:

• Contract conditions (payment amount, lease period and etc.) update at any moment of lease period.
  
• Changes history tracking.

Ending and termination:

• Automated schedule ending and RoU disposal when zero balance for lease liabilities is reached.
  
• Premature termination (early buy-out or termination) management.
  

Lease agreement accounting:

• Lease liabilities and RoU acquisition cost posting on contract activation to General Ledger and Fixed Asset module.
  
• Automated lease liabilities reduction posting based on lease schedule.
  
• Automated calculation of contract amendment effect (gain/loss) and posting to General Ledger and Fixed Assets module.
  
• Premature termination effect calculation and posing it to General Ledger and Fixed Assets module.