IFRS 16 has changed the reporting landscape for organisations entering into a leasing arrangement. As the first reporting periods after the implementation of AASB 16 approaches, some businesses are waking up to the fact that the transition to AASB 16 is no easy feat, and could have long-lasting ramifications on the business.
So what are the problems organisational finance teams should be aware of, and what is the solution?
Ongoing problems with good IFRS 16 governance
In our experience working with clients on AASB 16 compliance, we’ve had a number of recurring questions centred around two key problems:
- Choosing the right transition strategy for IFRS 16
- IFRS 16 maintenance – IFRS 16 is not ‘set and forget’.
A solution for those facing complexity
The experts here at BDO Australia are well-placed to help your organisation with IFRS 16 on both a technological and advisory front.
- BDO Lead: This is our cloud-based lease management solution available to Australian businesses that require help managing the complexities around the new leasing standards. It has a simple user-friendly data input interface designed to make migrating to AASB 16 easier, able to store thousands of leases at a time - and running all the necessary calculations in the background. Users can quickly analyse all their documents based on certain criteria, track changes and reassess leases.
View a demonstration and further information on BDO Lead.
- BDO Lease Management Services (Outsourcing of your lease accounting): If you desire, we can manage AASB 16 compliance on your behalf, migrating your information to BDO Lead, liaising with your team to keep lease arrangements updated, and provide monthly journals to keep you apprised of all relevant business information. This takes the hassle away from you and your team, allowing you to do what you do best while we handle the complexities.
View further information on BDO Lease Management Services.
- AASB 16 Masterclasses: Our hands-on masterclass will have you ready to adopt AASB 16. Run by BDO’s IFRS Advisory experts, it will assist you in preparing the journals for adoption of AASB 16. Through the use of a practical case study, attendees will leave the day with an in-depth knowledge of how to perform the required lease calculations on the date of implementation and thereafter on an ongoing basis using Excel.
View further information on AASB 16 Masterclasses.
IFRS 16 training materials and publications:
International Financial Reporting Bulletins
To learn more about how BDO Australia can help your organisation in particular, contact us today.