IFRS 16 started applicable from the 1st of January 2019 and is primarily oriented to companies that are lessees of any property and companies that already apply IFRS in their practice.

IFRS 16 challenges:

  • increased regulatory burden forces to be certain, that ERP systems are compliant with adjusted IFRS 16 requirements;
  • companies have limited timeline to adopt their ERP for meeting IFRS 16;
  • operational efficiency – the critical question - how to implement new requirements with the same amount of staff and within current ERP (not using excel for schedule calculations, etc.).

Columbus is presenting solution – IFRS 16 module, which can be incorporated into ERP. The main idea of Columbus IFRS 16 solution is to calculate present value of future lease payments and also calculate lease schedules, where contractual monthly payments are split into two parts – present value and interests amount. It also includes significant amount of features and enhancements, that are required by lessees in order to support lease agreement accounting according to IFRS, starting with it’s signing, schedule calculation and up to it’s natural ending or termination. Columbus IFRS 16 solution is based on Microsoft Dynamics NAV and tightly integrated with general ledger, fixed assets and other Microsoft Dynamics NAV modules.

Business benefits:

  • ensures, that ERP system is ready to meet regulatory requirements of IFRS 16;
  • presents more transparent balance sheet for stakeholders and investors.