International Financial Reporting Standards (IFRS16) introduced many changes, including covering several types of costs with leasing or a uniform accounting model. This, in turn, required updating and adapting the records of leasing contracts to the new legal reality. Despite the fact that the standards have changed some time ago, the management of leasing contracts can still be very problematic. How to solve the problems arising from this? There is one simple solution.
Make your work easier with purpose-built leasing contract management software
Of course, we are talking about a model accelerating and simplifying the leasing contracts management. With its help, you can almost automatically book documents in accordance with the International Financial Reporting Standards (IFRS 16, i.e. International Financial Reporting Standards).
However, not all software is suitable for this. What should a professional application stand out? At least a few extremely important functionalities. Among them are:
– calculation of right-of-use assets (ROU);
– estimating lease liabilities;
– covering future payments, interest and amortization (in accordance with IFRS 16);
– convenient access to data;
– data analysis in various sections;
– flexible scenario modeling;
– supporting the budgeting process;
– analysis of deviations;
– integration of IFRS 16 with ERP.
If the program meets the above standards, it can be safely said that it will help in literally any situation related to the management of leasing contracts from the beginning to the end of their term. It is difficult to overestimate the possibility of, for example, simplified asset calculation or scenario modeling. It is not only a matter of convenience, but also the safety of the entire company. In this way, human decisions are solidly based on data, and the risk of making a mistake is reduced to almost zero.
Another aspect that should be noted is the ability to operate the IFRS 16 model in the cloud (SaaS) or locally (on-premise). Access to only one option does not meet the needs of modern enterprises due to the reduction in security. There is always a risk of destroying locally stored information, which effectively hinders further work, and sometimes even makes it impossible to recover valuable data.
Why choose Incube CPM solutions for reporting?
An application that meets the above requirements, is versatile and intuitive to use is available on the market. This is the solution proposed by Incube. , which is gaining great recognition in the field of supporting financial processes among companies operating on the difficult Central European market.
This is mainly due to full substantive and technical support. Incube CPM employees are well acquainted with the needs of enterprises adapting to the requirements of IFRS 16. They provide professional design and implementation of the application, and then support and its administration.
This is why companies using the IFRS 16 Incube model have significantly strengthened their market position by accelerating the management of leasing contracts.