IFRS/ IND AS Lease Accounting Solution
THE NEW IND AS 116 has transformed the way of accounting for leases. This is in line with the IFRS 16 guidance on accounting for leases which came into effect on or after 01st January 2019. The new IND AS 116 came into effect from 01st April 2019.
IFRS 16 came into effect to judiciously report information that represents lease transactions and also to provide rightful basis to assess the timing, amount and uncertainty of cash flows that arise from leases.
IFRS 16 mandates a lessee to recognize and account for assets and liabilities for all long-term leases except for few low value assets. This standard requires recognizing a right-of-use asset for the underlying leased asset and a corresponding lease liability representing its obligation to make lease payments.
Oracle eBusiness Suite has come up with a new and refined solution for handling the lease accounting solution as per IFRS 16/IND AS 116. All the relevant impact on the lessee is considered along with different models for Finance and Operating Leases. Oracle eBusiness Suite Solution came up with compliance solutions under:
- Property Manager to manage the Real estate – Tenant and Landlord accounting
- Equipment Portfolio – Managing the Lessees and the Lessors
Depth Consulting capitalized on the Oracle Property Manager solution and implemented it for one of it’s largest customers in the BFSI sector.
Depth Consulting has been the Pioneer in getting the IND AS 116 Solution of Oracle Property Manager implemented in India for the first time.
Managing Property and Leases
Our role was in assessing the impact of the new accounting solution on the way the leases are maintained in the system and providing solutions for the same
We assisted in management of critical agreements, alteration of processes for rent renewals, administration and streamlining the process of lease modification through Amendment feature of Oracle Property Manager so that the impact on ROU Asset and Lease Liability is calculated
Provided system generated automated reports and calculation, Generation of Present Value, Calculation of Right-to-Use Asset and Lease Liability and automated monthly accounting with system generated reports
Benefits to Customer
- Quick deployment of IND AS 116 solution in the existing Oracle Property Manager Module already LIVE
- Automated calculation and reporting from the system with no manual intervention
- Automated changed accounting with no manual intervention