Overview

IFRS 16 specifies how an IFRS reporter will recognise, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value. Lessors continue to classify leases as operating or finance, with IFRS 16’s approach to lessor accounting substantially unchanged from its predecessor, IAS 17.

Under IFRS16, lessees must record all finance and operating leases on their balance sheet:

  • Liabilities – at the present value of the future lease payments
  • Assets – reflecting the right to use the asset during the lease term

Solution Features

ICit IFRS16 solution is a pre-built IBM Planning Analytics (TM1) application to save development time and to provide rapid time to value to our customers. Whilst we require a number of configuration days to tailor to specific needs, the accelerator reduces the deployment time by over 50%.

  • Dataload: lease details data can be input manually or imported from existing data source or csv file
  • Calculations: NPV, Interest, Depreciation & Cashflow calculations already tested. Includes the specific calculations required for Modifications, Reassessments and Impairments
  • Lease Life: the solution includes the lifetime value of each lease over the life of the lease
  • Reporting: the solution has “out of the box” reporting;
  • Summary Report
  • Variance Report
  • Monthly Journal
  • Cashflow Analysis

Benefits

  • Accuracy: Calculations at individual lease level
  • Speed: Calculation run-time is a few minutes per month
  • Analysis: Allows full access to underlying TM1 Cubes for ad hoc analysis and additional reporting

If you would like more information or to discuss the IFRS16 solution with one of our consultants, please contact us on 01565 831900 or email info@icitbi.com

IFRS16 Solution Brochure

For more information, please download the ICit IFRS16 Solution Brochure

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