Manage your leases easily and comply with AASB 16 standard
AASB16 introduces a single lessee accounting model requiring lessees to recognise all leases on the balance sheet, except for short-term leases and leases of low-value assets. This Standard applies to annual reporting periods beginning on or after 1 January 2019. AASB16 is equivalent to IFRS 16 with extra paragraphs on Leasing Treatment for Non-Profit Entities.
Stay compliant with the new standard with Soft4Lessee.
Import and export to/from other systems, using one of the following methods (or combination of methods): webservice, Excel files, XML files. Soft4Lessee can interface with other asset management, contract management systems, the general ledger system, and the management reporting system.
Lease Agreement Data Management
Have a database of your lease agreements, with three major statuses – new agreements under consideration, active leases, and archived leases (expired, or terminated early). Import data from Excel sheets or XML data files, or populate data via webservice.
As circumstances change, the system can calculate adjustments to lease liability and right-of-use asset value, and produce G/L postings accordingly.
Reports for IFR16 Presentation and Disclosures
Get ready reports which you need for your financial reporting and prepare additional information for IFRS 16 disclosures.
Accounting for Lease Liability
Calculate lease liability as the present value of lease payments, and the present value of amounts due at the end of the lease term, considering purchase or termination options. The system will automatically adjust lease liability as the circumstances change.
Accounting for right of use asset
Calculate RoU Asset value considering lease liability, costs before lease commencement and the expected cost of asset return (e.g. costs of equipment dismantling, costs of restoring leased premises). If the lease liability is re-assessed, the RoU asset value changes accordingly.
Handling of Non-lease component
If you have a composite contract that includes leases and services, the non-lease component is separated and posts to the operating expense account, separately from interest expense and asset depreciation expense, as required by IFRS16.
Managing Lease Modifications
The system allows lease modifications after the commencement date and will calculate the impact on lease liability and right-of-use asset. The system will produce G/L postings to reflect any lease modification.
Lease status management
Track leases by numerous statuses – under consideration, active, archived, requested, quoted, signed or withdrawn, activated, extended, early-terminated, buy-out, expired.
If you have leases with variable lease payments dependent on an index (like the Consumer Price Index) or reference interest rate (like LIBOR, EURIBOR), the system is able to calculate re-pricing and reflect it in accounting, as per IFRS16 requirements.
General Ledger integration
Have required G/L transactions at each due date and at the end of the accounting period. You can download G/L transactions in detail or at summary level and feed them into your general ledger system via webservice integration, or via an Excel or XML file.
Assessment of the Lease Term
Determine lease term by a number of circumstances – whether you are reasonably certain to execute the purchase option, or extension option, or terminate the lease before the end of the term.
Parallel accounting under IAS 17 standard
For purpose of comparison and impact analysis, Soft4Lessee can calculate and post to General Ledge expenses as per previous IAS 17 standard. This can also be used in scenarios, when IFRS 16 applied at group consolidation level.
Managing the multi-company businesses
If you have tens or hundreds of subsidiaries and account for leases per each legal entity, some functions can be run over multiple „companies“ in Soft4Lessee.
Manage change easily and move your business forward