Adapting to new accounting standards can be both challenging and complex. However, with the right solution, this change can become a valuable opportunity for your company to improve, learn, and grow. SOFT4Lessee is lease accounting software specifically designed to help businesses meet the requirements of IFRS 16, ASC 842, and AASB 16 with ease and accuracy.

Part of the Microsoft product family, SOFT4Lessee is intuitive, easy to learn, and highly efficient. It helps you manage large volumes of lease agreements and provides automation tools that support you every step of the way.

Lease accounting software simplifies lease data management

Lease accounting software saves time by reducing the hours spent on administrative work. Its automated tools are designed to support your specific needs and make everyday tasks smoother and more efficient. With this software, you can maintain a centralized database of your lease agreements, categorized under three primary statuses:

• New agreements under consideration

• Active leases

• Archived leases (expired or terminated early)

Even if you manage thousands of lease agreements from various lessors, all of your data will be accessible in one place. If you need to update any information in an active lease, you can do so in just a few clicks. The system also maintains a complete audit trail, ensuring that all changes are tracked for full transparency.

Additionally, the software includes built-in tools for lease liability accounting. Based on the parameters you enter, it calculates the lease liability as the present value of lease payments, including any amounts due at the end of the lease term, and considers options to purchase or terminate. The system automatically adjusts the lease liability as circumstances change. It also calculates the initial measurement at the commencement date and performs subsequent measurements at the end of each reporting period (monthly, quarterly, or annually).

Designed for compliance with lease accounting standards

The implementation of IFRS 16, AASB 16 and the US GAAP standard ASC 842 significantly impacted organizations with large operating lease portfolios. Both standards require nearly all leases to be recorded on the balance sheet, increasing the complexity and volume of financial reporting. Dedicated ASC 842 lease software, IFRS 16 software, AASB 16 software like SOFT4Lessee simplify the transition and help maintain compliance.

SOFT4Lessee provides ready-to-use reports for financial disclosures. In the statement of financial position, you must present right-of-use assets by asset class and lease liabilities separately from other liabilities. These details are readily available from the software in the form of Excel reports or as data files for upload into your general ledger or financial systems.

The same applies to the profit and loss statement, where you must show:

• Interest expense on lease liabilities

• Depreciation of right-of-use assets

• Non-lease components, which are presented under operating expenses

SOFT4Lessee generates these figures automatically and provides outputs ready for reporting or integration with your accounting system.

In the cash flow statement, ASC 842, IFRS 16, AASB 16 require you to separately report:

• Principal payments on lease liabilities

• Interest portions

• Payments related to short-term and low-value leases under operating activities

SOFT4Lessee delivers a complete breakdown of lease-related cash flows, saving time and ensuring compliance.

Support for dual reporting and impact analysis

To support companies that still need to compare current results with the previous IAS 17 standard, SOFT4Lessee can calculate and post expenses based on IAS 17. This is particularly useful for impact analysis, audits, or historical comparisons during the transition period.

By managing both current and legacy reporting requirements in one system, SOFT4Lessee gives your finance team a complete overview and the flexibility to meet all reporting obligations with confidence.