Starting the first of January 2019, companies reporting under IFRS need to be IFRS 16 compliant. The new standard can have a big impact on the financial metrics and your Financial reporting systems. Do you currently lack an IFRS 16 tool to support reporting? Then we have the perfect solution for you.
How IFRS 16 affects your metrics
IFRS 16 represents ‘the new lease standard’ and will affect accounting from the lessee perspective. Under the new standard, both operational and financial leases need to be recognized on the balance sheet which will reflect the value of the right of use asset and corresponding lease liability. IFRS 16 affects individual balance sheet accounts which have further impact on ratio's such as debt/equity ratio, asset turnover and solvency. Besides the impact to the balance sheet, the profit and loss will show an increase in EBITDA due to movement of operation lease expense to depreciation and interest.
IFRS 16 reporting made easy
Since leasing is a common practice, the new standard can have a big impact on your financial reporting systems. Want to be IFRS 16 compliant and see the impact of the new lease accounting rules? Schedule a demo today!
- Store all relevant data from your lease contracts in one central register.
- Based on the loaded contracts, calculate the value of your lease liability right of use asset and corresponding depreciation and repayments.
- Automated journal generation can be used to book these values straight into your financial system in order to have actual reporting in place.
- Calculate the impact for the lifetime of your lease portfolio.
- Instant overview of the Balance Sheet, Profit and Loss and Cash Flow impact.
- Forecasting solution to understand impacts of variables to future financials.