Utilise software developed specifically to manage your real estate and equipment leases
IFRS 16 is here. Having come into force on 1 January, 2019 in South Africa, the new standard requires businesses to reflect lease commitments in their company financials by recording them on the balance sheet. This applies to land, buildings, assets and equipment where the lease is over a year in length. To adopt the standard, fully comprehend its impact across an organisation and provide full visibility to stakeholders, a specialist system will be required. At MRI Software, our comprehensive solution suite has consistently evolved to help clients in South Africa meet the rigorous demands of core accounting and financial reporting regulations – and our current product range has been developed specifically for introduction of the new IFRS 16 standards. Our innovative IFRS 16 software is being utilised by several leading corporate occupiers in retail, aviation, telecoms, logistics and a variety other sectors to efficiently and proactively tackle the complexities involved and produce accurate financial information with relative ease. Working in partnership with our team of subject-matter experts, the platform can be utilised as a standalone IFRS 16 calculation tool or be delivered as part of an integrated lease management, property management and accounting system.
Automatic recalculations and associated balance sheet adjustments when required
Manage landlord incentives, impairments and dilapidations
Manage transitional rules and the entire life of the lease.
New disclosure reports providing details of right of use assets, interest, amortisation, cash flow and weighted terms
Get notification alerts when critical information changes
Scenario modelling of lease terms to limit the impact of new leases on the balance sheet
API available to interface IFRS 16 journals and lease payments to your corporate ERP
Create an asset class matrix and define discount rates by asset type
Multiple assets grouped to a single lease contract when required
Set materiality thresholds with the ability to exclude low value leases
Manage decision-making process for break clauses and extensions
Handle the impact of IFRS 16 on your subleases
Building success and empowering collaboration with purpose-built IFRS 16 software
One of the most critical measures of success in the adoption of IFRS 16 will be how closely the finance and real estate departments work together – along with members of HR, legal and procurement teams. Collaboration will be a cornerstone of effective implementation, and where teams seek to act in isolation, they risk missing crucial nuances that may have a major impact – particularly if they’re trying to handle calculations across separate platforms. By harnessing the power of a comprehensive and flexible lease accounting solution, you can bridge the gaps and ensure data is captured, at source, with no need for double entry. It also provides the tools for your organisation to work as one, and allows for effective, clear and accurate information to be communicated to the business, its stakeholders and its investors.
How we can help
IFRS 16 Infographic
Find out about the benefits of departmental collaboration for IFRS 16 and ASC 842 compliance