IFRS 16/ASC 842  Compliance with Confidence
IFRS 16/ASC 842  Compliance with Confidence

On January 2016, the International Account Standard Board (IASB) released the new lease accounting standard IFRS 16 to accomplish the object that record leasing property/ facilities in lessee’s balance sheet, which means the assets and liabilities in balance sheets of those enterprises with large amount of leasing properties and facilities will increase. Many industries will be influenced by this new accounting standard, such as airline business that lease airplanes and retail industry that lease properties. The larger scale of leasing, the more influence to the key financial reports index

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Lessee’s accounting pattern

 

Single lease accounting pattern
No lease classification test
All leasing item will be record in balance sheet:

国际娱乐- Lessee confirm right-to-use assets and leasing liabilities

国际娱乐- Treat as finance assets

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Lessor’s accounting pattern

 

Dual lease accounting pattern
Lease classification test based on IAS 17 classification standard
Finance lease accounting treatment based on IAS 17 with corresponding lease, which require lessor to confirm lease
Operating lease accounting treatment based on ISA 17 with corresponding lease

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Simplify practice operation method and specific exemption

 

Lessee could request exemption for short-term lease (less than 12 moth under new lease accounting standard)
month under new lease accounting standard)
国际娱乐 Lessee could request exemption for low price leasing project —(single assets value less than $5,000 when is brand new)

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commencement data

 

Accounting period begin after January 1st 201
Allowed to adopt in advance, but must adopt IFRS 15 at same time

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Lessee’s accounting pattern

 

Single lease accounting pattern
No lease classification test
All leasing item will be record in balance sheet:

国际娱乐-Lessee confirm right-to-use assets and leasing liabilities

-Treat as finance assets

Image description

Lessor’s accounting pattern

 

Dual lease accounting pattern
Lease classification test based on IAS 17 classification standard
Finance lease accounting treatment based on IAS 17 with corresponding lease, which require lessor to confirm lease
investment net value from lease receivable and residual assets
Operating lease accounting treatment based on ISA 17 with corresponding lease

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Simplify practice operation method and specific exemption

 

Lessee could request exemption for short-term lease (less than 12 moth under new lease accounting standard)
国际娱乐Lessee could request exemption for low price leasing project (single assets value less than $5,000 when is brand new)

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commencement data

 

Lessee could request exemption for low price leasing project (single assets value less than $5,000 when is brand new) Accounting period begin after January 1st 2019
国际娱乐Allowed to adopt in advance, but must adopt IFRS 15 at same time

Influence to Key Financial Index

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Even if the cash rent is the same, the total rental fee is also from high to low

Influence to Key Financial Index

Software Functions for IFRS 16

To help enterprises prepare for new accounting standard, we develop "Seepln Leasing" management platform to provide comprehensive solutions to IFRS 16

IFRS 16 Evaluation and calculation plan

国际娱乐Right-to-use assets initial & subsequent measurement, lease liability subsequent measurement, and reevaluation.

Contract management

Meet legal, management, calculation, and filing requirements

Reporting and disclosure

国际娱乐Contract statistic, financial summary, events statistic, expiration reminder

Reserved contract transitional plan

国际娱乐Full retrospective method, modified retrospective method, initialization data, ERP update

Analysis, forecast, and Dashboard

Multi-dimensional vision, decision supporting, and chart display

ERP compatibility

Interface ERP, analysis and control system, and external system

Software Functions for IFRS 16

To help enterprises prepare for new accounting standard, we develop Seepln Leasing “Seepln Leasing租赁管理平台”,并提供应对IFRS16的完整Solutions。

IFRS 16 Evaluation and calculation plan

Right-to-use assets initial & subsequent measurement, lease liability subsequent measurement, and reevaluation.

Contract management

国际娱乐Meet legal, management, calculation, and filing requirements

Reporting and disclosure

国际娱乐Contract statistic, financial summary, events statistic, expiration reminder

Reserved contract transitional plan

Full retrospective method, modified retrospective method, initialization data, ERP update

Analysis, forecast, and Dashboard

Multi-dimensional vision, decision supporting, and chart display

Integrate with multiple ERP platforms

国际娱乐Interface ERP, analysis and control system, and external system

about us

Seepln Leasing solutions is an excellent software for enterprise lease management and lease accounting compliance with IFRS 16 and and CAS 21 ASC 842. Our mission is to provide professional, efficient, and intelligent products and services to help our customer build data analysis tools and solutions based on digital assets and algorithm model.

contact us

400 821 9199
(86) 21 62662533

No.68 Tongchuan Road Pinzunhemei Square, Floor 3, Room 316
Shanghai, China Zip code 200333

about us

Seepln Leasing solutions is an excellent software for enterprise lease management and lease accounting compliance with IFRS 16 and CAS 21 and ASC 842. Our mission is to provide professional, efficient, and intelligent products and services to help our customer build data analysis tools and solutions based on digital assets and algorithm model.

contact us

400 821 9199
国际娱乐 (86) 21 62662533

No.68 Tongchuan Road Pinzunhemei Square, Floor 3, Room 316
Shanghai, China Zip code 200333

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