Be in control of sub-leases and lease-in / lease-out scenarios

SOFT4Lessee, together with SOFT4Leasing, automatically applies appropriate accounting procedures for operating and finance leases while ensuring consistent reporting and compliance.

Careers
Careers

Lessor lease accounting for operating leases

Under lease accounting standards, lessors account for operating leases as follows:

  • Balance Sheet: leased assets remain on the lessor's balance sheet and continue to be depreciated

  • Income Statement: lease income is recognized on a straight-line basis as operating revenue; depreciation expense recorded as operating expense

  • Cash Flow Statement: lease payment receipts are classified as operating cash inflows

  • Key principle: lessor retains substantially all risks and rewards of asset ownership

Lessor lease accounting for finance leases

Under lease accounting standards, lessors account for finance leases as follows:

  • Balance Sheet: lease receivables (present value of future payments) replace the leased asset

  • Income Statement: interest revenue on lease receivable; selling profit/loss at commencement

  • Cash Flow Statement: interest component as operating inflow; principal component as investing inflow

  • Key principle: treated as a sale and financing arrangement

Careers
Careers
Careers
Careers

Lease-in and lease-out (LiLo) scenario

If your company has lease-in and lease-out (LiLo) scenarios or sub-leases, combine SOFT4Lessee (lessee) with SOFT4Leasing (lessor). This integrated approach enables end-to-end lease management within a single system, efficiently handling complex arrangements where the your company acts as both lessee and lessor. It will ensure consistent reporting and compliance.

We support your chosen
lease accounting standard

Focus on financial planning instead of compliance complexities - we're here for that.

IFRS 16

ASC 842

AASB 16

NZ IFRS 16

FRS 102

Have questions?

We support your chosen
lease accounting standard

Focus on financial planning instead of compliance complexities - we're here for that.

IFRS 16

ASC 842

AASB 16

NZ IFRS 16

FRS 102

Have questions?

Frequently asked questions

Can you integrate SOFT4Lessee with another ERP (accounting) software?

Does SOFT4Lessee handle both lessee and lessor aspects of the lease accounting standards?

How long does it take to start using SOFT4Lessee?

Will I be able to upload lease information from Excel for the initial transition?

Does SOFT4Lessee handle multi-currency functionality?

Still have questions? Just ask our team

Frequently asked questions

Can you integrate SOFT4Lessee with another ERP (accounting) software?

Does SOFT4Lessee handle both lessee and lessor aspects of the lease accounting standards?

How long does it take to start using SOFT4Lessee?

Will I be able to upload lease information from Excel for the initial transition?

Does SOFT4Lessee handle multi-currency functionality?

Still have questions? Just ask our team

Be in control of sub-leases and lease-in / lease-out scenarios

SOFT4Lessee, together with SOFT4Leasing, automatically applies appropriate accounting procedures for operating and finance leases while ensuring consistent reporting and compliance.

Careers

Lessor lease accounting for operating leases

Under lease accounting standards, lessors account for operating leases as follows:

  • Balance Sheet: leased assets remain on the lessor's balance sheet and continue to be depreciated

  • Income Statement: lease income is recognized on a straight-line basis as operating revenue; depreciation expense recorded as operating expense

  • Cash Flow Statement: lease payment receipts are classified as operating cash inflows

  • Key principle: lessor retains substantially all risks and rewards of asset ownership

Lessor lease accounting for finance leases

Under lease accounting standards, lessors account for finance leases as follows:

  • Balance Sheet: lease receivables (present value of future payments) replace the leased asset

  • Income Statement: interest revenue on lease receivable; selling profit/loss at commencement

  • Cash Flow Statement: interest component as operating inflow; principal component as investing inflow

  • Key principle: treated as a sale and financing arrangement

Careers
Careers

Lease-in and lease-out (LiLo) scenario

If your company has lease-in and lease-out (LiLo) scenarios or sub-leases, combine SOFT4Lessee (lessee) with SOFT4Leasing (lessor). This integrated approach enables end-to-end lease management within a single system, efficiently handling complex arrangements where the your company acts as both lessee and lessor. It will ensure consistent reporting and compliance.

We support your chosen lease accounting standard

Focus on financial planning instead of compliance complexities - we're here for that.

IFRS 16

ASC 842

AASB 16

NZ IFRS 16

FRS 102

Have questions?

Frequently asked questions

Can you integrate SOFT4Lessee with another ERP (accounting) software?

Does SOFT4Lessee handle both lessee and lessor aspects of the lease accounting standards?

How long does it take to start using SOFT4Lessee?

Will I be able to upload lease information from Excel for the initial transition?

Does SOFT4Lessee handle multi-currency functionality?

Still have questions? Just ask our team

Ready?

Simplify your lease compliance

Ready?

Simplify your lease compliance

Ready?

Simplify your lease compliance

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