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Leasing Solution (IFRS 16)

Accounting for leases (IFRS 16) 

Escali Leasing covers the requirements for accounting of leases according to IFRS 16, but also for other general accounting standards. 

Simply enter the lease details, and the system takes care of the rest! You get a full overview of all leases: terms, maturity, cash flows and accruals. 

Features in Escali Leasing

  • Register of all leases
  • Calculations and bookkeeping of:

    • Lease obligation
    • "Right-to-use"
    • Accruals
  • Calculation of implied interest
  • Calculation of present value
  • Management of options and changes
  • Overview of Cash Flows
  • Import of contracts
  • IFRS 16 notes
  • API´s for Power BI and Data Warehouses
  • ERP API´s

A register of all leases 

Get a full overview of all leases and terms in the system. You can enter all types of leases and data such as term amount, payment frequency, start and buyout amount. The system also takes care of options and service elements related to the leases. 

Calculation and bookkeeping

Escali Leasing will automatically calculate the lease obligation and the “Right-to-use” for the balance sheet. It will split the term amounts into interest and installments, depreciations and service fees based on the terms of the agreement and calculated implied interest (IRR) or present value. All these calculations can be automatically posted and exported to the accounting system. Corrections in the balance sheet due to changes in the lease agreement can also be made. In addition, the system takes care of accruals. 

Calculation of implied interest and present value 

For agreements where the lease amounts and initial values are defined, the system will calculate implied interest (IRR). This is used to distinguish the interest rate from the lease amount. In cases where the initial value is unknown, the system will calculate the present value based on the expected cash flows and the incremental borrowing rate. 

Management of changes 

Changes to the lease agreements can be easily managed in the module. If for example, the lease amount changes, a new implied interest will be calculated. Such changes normally require a re-calculation of present value for the leasing contract, based on existing implied interest.  

Management of options

Escali Leasing will handle options related to the leasing contract. Terms and dates for the option can be registered together with the probability of exercise.  

Overview of cash flows  

The module gives a full overview of historical and future cash flows. These can also be exported to 3rd party solutions, integrated with Escali Financials Treasury Management solution, Excel or BI systems. The system enables you to perform cash flow analysis based on different interest and FX scenarios. You can also produce your own budgets and forecasts.

Additional functionality 

Escali Leasing covers all IFRS 16 notes and other reporting needs. The system includes dynamic dashboards and static reports. It can be integrated with existing BI-systems, Excel, 3rd party reporting tools and cash management systems. It also handles industry-specific requirements such as daily rates and double accounting currencies. The module can be used as a stand-alone application, or together with other modules in our treasury and portfolio management system, Escali Financials. 

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