IFRS 16/ AASB 16/ ASC 842: You Can’t Choose To Not Comply
Do deadlines scare you?
Time is running out – just a few months are left until the IFRS 16/ AASB 16/ ASC 842 lease accounting changes. Knowing how IFRS 16 will affect you and ensuring the transition is as smooth as possible should be a high priority for all leaseholders.
IFRS 16/ AASB 16/ ASC 842 will have a huge impact on how organizations need to manage and report their lease data. The new leases standard will require you to bring more transparency to balance sheets by recognizing new assets and liabilities. However, numerous companies still do not have an IFRS 16 software solution selected or they rely on customized spreadsheets. Yet we need to address the risks it brings to your business.
The truth is – you just can’t ignore IFRS 16/ AASB 16/ ASC 842. And here are 3 reasons why.
1) Manual calculation mistakes and errors in spreadsheets could cost you thousands
Although Excel is a fantastic tool, it simply lacks the functionality you need to properly manage your leases and support financial reporting for IFRS 16. It’s also worth mentioning that complex calculations and Excel are not compatible – lots of spreadsheets and manual data entry causes mistakes. Companies who manage hundreds of lease agreements spread across several countries should consider automated accounting software tools designed specifically to address IFRS 16 requirements.
2) Non-compliance can put your business in danger
Regulations are put in place to ensure that commercial entities act in a responsible manner. Of course, there are countless regulations that change rapidly. Moreover, they are complex. That’s why many businesses tend to treat compliance irresponsibly, with little consideration of the consequences. What are the risks of non-compliance in an IFRS 16 case? If your business fails to adopt the new standards, you won’t be able to source credit lines and find investors.
3) “Sorry, there’s no time for you”
Companies that are waiting till the last minute may end up having to line up in the queue for the software providers in order to implement the software for their needs. It’s not that you’re not important – many companies will be affected by the same changes and are looking for the same solutions. You don’t want to begin too late and find out that all the potential providers are simply too busy to help you.
Have you already selected experts to manage your transition? You can’t choose to not comply, but you can choose the right tool to manage your transition. Our IFRS 16 lease accounting solution SOFT4Lessee will help you manage lease accounting according to the IFRS 16 changes.
Try IFRS 16/ AASB 16/ ASC 842 lease accounting software:
- Start within 8 hours, pay from 179 Eur/ 199 USD /month;
- Based on the trusted and secure Microsoft platform;
- Can be easily integrated with any accounting software;
- Benefit from significant industry knowledge and international experience.