The implementation of IFRS 16 still remains a pressing problem for some companies. The effort required for the development of flexible business logic behind the calculation that can easily be supported from period to period, significantly exceeds any expectations. With a substantial number of contracts it’s challenging for a company to choose the right software product for the business process automation.

While preparing the adjustment every reporting period, the focus should be shifted to the analysis of the impact of lease accounting on the company’s financial performance. Technical work and manual actions should be minimized.

FIN.BY automation solution for IFRS 16 Rent

Our solution is built on Excel platform and its advanced capabilities such as FIN.by Tools add-in and Power Query used for data import and transformation.

Benefits of FIN.by’s “IFRS 16 Lease accounting” Tool:

• Licensed software ensures swift implementation (it requires minimal configuration related to the specifics of client's business process).
• Calculation architecture can process any number of lease contracts.

• The tool keeps records of lease contracts in dynamics and tracks history of modifications in supplemental agreements throughout the entire contract term.
• Calculation template is used for lease contract recognition. Calculations are built automatically after template identification with a unique name, this requires a user to: 1. rename the Excel sheet; 2. select an agreement from the drop-down list.

• To recognize the effect of a modification, it is necessary to specify only the changed parameters in special cells, the calculation is performed automatically. All typical cases of accounting for lease contract modifications are handled by the model’s business logic and comply with IFRS 16.
• The option to use rent-related source data from the company's ERP (1C, SAP, etc.) to reverse rental expenses recognized in the local accounting. Manual data manipulations are not required, extracts (reports) from ERPs are processed automatically by our tool.
• Automatic fetching of market interest rates (for rental payments discounting) and foreign exchange rates of the national currency, published on regulators' websites.

• Comprehensive check system with error messages, warnings of calculation discrepancies and hints on how to fix them.

What is the results of IFRS 16 automation?

• Supported software for lease contracts accounting under IFRS 16.
• IFRS adjustment generation for transfer to transformation table.
• Preparation of IFRS 16 disclosures based on client's format for transfer to the reporting package.
• User’s manual in PDF and video guide for working with the tool.

Detailed view of FIN.by Instrument

Learn more about software functionality: https://ifrs.fin.by/ifrs16/

Software visualization in Prezi format: https://prezi.com/view/dbxNSbM4c7SXzdvoxKLk/