You can quickly use the solution in the cloud by only capturing your contracts and your accounting entries for the general ledger will be provided for downloading.
Changes to the definition of leases, which entail the separation off-balance-sheet service contracts, were made in IFRS 16. All leasing agreements, apart from low-value or short-term leases, have to be disclosed on a lessee’s balance sheet. A ‘right-of-use’ asset and the present value of the leasing liability are used for balance sheet disclosure. IFRS 16 regulates the processing of all expenses including items not covered by a leasing agreement, variable leasing instalments not based on index or interest rates as well as option rights.
Complete and sustainable implementation of this standard will result in far-reaching consequences for lessees. IFRS 16 entails significant process changes for lessees, such as the electronic, comprehensive capture of contractual rights and obligations as set out in the lease, interpretation of these in valuation and accounting as well as amended disclosure requirements.