Five IFRS 16 Lease Accounting Mistakes - Nomos One

Five IFRS 16 lease accounting mistakes

You don’t need us to tell you how stressful year-end reporting can be. Each year, we help hundreds of customers prepare for their year-end, and we know that each customer works differently. Here are some common IFRS 16 lease accounting mistakes you can easily avoid making when it comes to preparing for your year-end reporting:

1. Leaving all your IFRS 16 lease accounting to the last minute

The earlier you start to prepare your IFRS 16 lease accounting, the better prepared you are and allows you more time to receive help if required. We want to ensure we can support our clients through this busy period.

If you are working with multiple teams or organisations to prepare your year-end reporting, we recommend setting up meetings at your earliest convenience so you are all aligned.

2. Are you comfortable using the software?

We want you to be using Nomos One effortlessly. If you are unsure of any IFRS 16 lease accounting or financial reporting features, don’t hesitate to contact support.

Our team can either guide you through knowledge base articles or provide you and your team additional training so you can best use Nomos One for your reporting needs.

3. Make sure you review your portfolio

This is specific to your lease portfolio and the reporting requirements you have. We recommend running a lease audit beforehand so you can check that each lease is still accurate and make the necessary adjustments before year-end.

Some common questions we ask our customers:

  • Is your portfolio complete?
  • Is the discount rate you’ve applied still applicable?
  • Do you still plan to use the number of renewals you’ve assumed?
  • Have you surrendered any leases?

4. Check your events are up to date

A lot can happen in a year to a lease. Have you accounted for all the events when they occur?

This includes:

  • Market Rent Reviews
  • CPI Rent Reviews
  • One-off payments
  • Variations to the agreement
  • Incentives
  • Number of expected renewals

5. Ask for help if you need it

If you’ve done all these steps and something still doesn’t seem right with your IFRS 16 lease accounting, don’t hesitate to contact your support team.

This goes for all organisations or teams you may work with when preparing your year-end reports.

To find out how we can help support you with your lease accounting year-end reports, contact us today.

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