ifrs 16 accounting toolifrs 16 accounting tool capture and account for leases with this efficient...
TRANSCRIPT
IFRS 16 Accounting Tool Capture and account for leases with this efficient and effective new model.
KPMG’s IFRS 16 Accounting Tool (KIAT) enables rapid, easy and accurate accounting for your leases under AASB 16 (IFRS 16).
Entities are now required to bring most operating leases onto the balance sheet. Greater transparency about an entity’s lease commitments, and changes to key financial metrics such as gearing ratios, asset turnover and EBITDA will therefore occur. Leases for assets such as property and equipment previously recognised off-balance sheet will be accounted for as a right-of-use (ROU) asset and lease liability, and on-going reassessments may be required.
KIAT is an easy-to-use tool designed to automate lease accounting and reduce the disruption of the accounting standard change to your business. The cost effect model:
– Generates both the AASB 16 and AASB 117 accounting entries
– Provides granular level journal entries (single lease, entity, asset type, other)
– Provides annual and monthly journal outputs for posting in ERP
– Produces annual and monthly projections of relevant items affecting income statement, balance sheet and cash flow - for up to 120 years!
Conforms to the new AASB 16 – Leases accounting standard.
Enables AASB 16 and AASB 117 accounting entries, including transition adjustments and annual and monthly journals. AASB 117 entries facilitate impact assessment against pre-AASB 16 budgets/KPIs.
Generates supporting lease level results. These can be grouped for useful presentation by:
1. Organisational type
2. Asset type
3. Functional/presentation currency
4. User defined groupings.
Provides balance sheet, income statement, and cash flow projections.
Produces the annual and monthly projections of relevant items affecting balance sheet, income statement, and cash flow.
Supports large lease portfolios and foreign exchange impacts.
The model has been stress tested to support ongoing accounting for up to 6,000 leases and facilitates multi-currency transactions.
© 2019 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo and are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
Simple Reduces business disruption from the change in accounting standard.
Fast and cost effective deploymentOne-off payment for an ongoing solution presents a cost effective alternative to accounting systems. Tool requires no tailoring.
Visibility Provides oversight to organisations on their accounting and cash flow commitments in relation to their leases.
EfficiencyReduces the need for additional resources to meet the new accounting requirements of this standard.
VersatileEnables users to analyse and account for a wide variety of leasing scenarios – including complex reassessments and foreign currency.
Access anywhereRuns remotely, so no internet connectivity is required. The tool can be used anywhere in the world.
What are the benefits to you?
Automate lease accounting
The information contained in this document is of a general nature and is not intended to address the objectives, financial situation or needs of any particular individual or entity. It is provided for information purposes only and does not constitute, nor should it be regarded in any manner whatsoever, as advice and is not intended to influence a person in making a decision, including, if applicable, in relation to any financial product or an interest in a financial product. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
To the extent permissible by law, KPMG and its associated entities shall not be liable for any errors, omissions, defects or misrepresentations in the information or for any loss or damage suffered by persons who use or rely on such information (including for reasons of negligence, negligent misstatement or otherwise).
© 2019 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo and are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation. June 2019. 361939784AARC.
leaseaccounting.kpmg.com.au
Andy [email protected]
Will Tipping [email protected]
Marina ShuAssociate [email protected]
Innovation in lease accounting
Contact us
An easy-to-use automated solution
Designed to improve lease accounting processes
1 2Journal entries
What used to take hours to complete can be reduce to minutes.
Financial summary – at individual lease, user defined groupings, and portfolio levels
Entity profile
Journals Financial summary
Calculation engine
Input templates
To find out how the KPMG IFRS 16 Accounting Tool can help you, speak with your KPMG team or contact: