Parag Patadiya
Partner - Head of Assurance Services
International Financial Reporting Standards (IFRS) are changing. From 1 January 2019, IFRS 16, will impact on the way leases are accounted for by lessees in terms of recognition, measurement, presentation and disclosure.
This is where BDO Lead can help – a streamlined and efficient lease management and IFRS 16 technology solution.
BDO Lead helps you transfer existing data, supplemented by additional parameters necessary for accounting (under IFRS 16), to a single database. Features include:
- Ability to manage thousands of leases where data is entered into a spreadsheet and BDO Lead takes care of the calculations
- Recognising the transitional effects and ongoing impacts on KPIs and relevant disclosure requirements
- Importing existing lease contract data via an import interface
- Guiding the user through the complexity of the standard and providing the final journal entry for existing and new lease contracts
- Ensuring that the history of data inputs can be retrieved at any time and in contrast to a spreadsheet program, unintentional overwriting of information is not possible.
- BDO Lead has a great track record and has been successfully implemented by organisations including Aldi Supermarkets and Deutsche Telekom
Current challenges for multiple lease holders
Functions of BDO Lead
| Archival |
BDO LEAD gives users the opportunity to save leases under review in a central database and the ability to analyse all leases based on criteria. Information can also be tailored to fit with your requirements. |
| Measurement |
BDO LEAD allows you to manage leases on a quantitative basis. Once the lease payments have been entered, BDO Lead calculates the present value of the lease payments and the amount of the lease liability, including the right-of-use asset. There are also options to track changes and reassess leases. BDO Lead also calculate the interest expense and depreciation for the period. |
| Analysis |
Information stored in the database can be used to analyse leases. The basic version of BDO Lead comprises analysis tools that be tailored to the user and sector. This includes:
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Web-based application
As a web-based portal, BDO Lead allows users to input their lease information (when it starts, the monthly payment, end date and borrowing rate), and will:
- Calculate the interest expense for the period
- Calculate the depreciation for the period
- Calculate the right-of-use asset and lease liability at the end of the period
- Take care of the presentation in the financial statements.
Created by both IFRS experts and software developers, BDO Lead takes into account transitioning and ongoing maintenance of leases.
