OIXIO IFRS 16 solution
Specialized Software Solution for IFRS 16 Accounting.
With the growth of legal regulation, companies are forced to take care of the compatibility of their business management systems with the accounting standards, which include the lease accounting standard – IFRS 16, which entered into force at the beginning of 2019. One of the main challenges facing companies is how to implement new requirements having the same number of staff and in the same system.
OIXIO IFRS 16 Solution Possibilities
The OIXIO IFRS 16 system is implemented using 3 standard Microsoft module features: Financial Management – Ledger, Fixed Assets and Purchases and Amounts Payable.
The functions of the listed modules are supplemented with specific features to meet the requirements of IFRS.
– Possibility to define individual lease conditions to each lease schedule;
- Possibility to calculate separate schedules for each RoU Asset.
– Net present value calculation, based on periodical payment amount and lease period;
– Periodical Payment split into principal part and interests during lease period;
– Support of variety payment periods: monthly, quarterly, half year, annual;
– Up-Front lease payments;
– Advance payment;
– Flexible payment calculation for the first and last payment period;
– Fix and variable interest rates;
- Contract status workflow management.
– RoU Assets management using standard Fixed Assets functionality, with its features, functionalities, reporting possibilities;
– Automated Fixed Assets cards creation and schedule calculation in case of lease agreements with multiple items of lease property;
– Periodical RoU Assets depreciation calculation;
- Depreciation and Interests expenses allocation using RoU Asset dimensions allocation template.
– Contract conditions (periodical payment amount, lease period, interest rate) update and schedule recalculation at any moment of lease period;
– Changes history tracking;
– Automated schedule recalculation after variable interest rate change.
– Automated schedule ending and RoU Asset disposal when zero balance for lease liabilities is reached;
– Premature termination (early buy-out or termination) management.
– Lease liabilities and RoU Asset acquisition cost posting on contract activation to General Ledger and Fixed Asset module;
– Long term and short term liabilities tracking.
– Automated periodical lease liabilities reduction posting, based on confirmed lease schedule;
– Automated calculation of schedule amendment effect (gain/loss) and posting to General Ledger and Fixed Assets module;
– Premature termination effect calculation and posing it to General Ledger and Fixed Assets module.
– Standard NAV reports for dimension analysis;
– Standard Fixed Assets reporting tools.
OIXIO IFRS 16 Solution View
Benefits for the Business
A specialized system developed for IFRS 16 creates six benefits for business.
Find our solution on Microsoft AppSource
Solution helps the lessees to support and ensure lease agreements accounting according to IFRS16.
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