Ports are among the most complex and strategically important infrastructure hubs in a country’s economy. As gatekeepers of trade and logistics, port authorities and operators oversee an intricate web of contracts and leased assets, from berths and storage facilities to commercial zones and marine equipment. Financial transparency and compliance have always played a role in port operations, but with the introduction of IFRS 16, lease accounting has evolved from a background administrative task into a strategic priority. IFRS 16 fundamentally reshaped how organisations report lease obligations. For ports, this has meant bringing formerly off-balance-sheet leases onto the books, exposing not only the scale of lease liabilities but also the need for rigorous, auditable, and accurate accounting systems. With vast lease portfolios and long-term infrastructure arrangements, ports are now facing heightened regulatory expectations. In this article, we explore the implications of IFRS 16 for port operations, why manual tools like spreadsheets are no longer fit for purpose, and how specialised digital platforms like Nomos One are helping ports achieve clarity, compliance, and confidence in their lease accounting.
Understanding IFRS 16 in the port context
At its core, IFRS 16 requires lessees to recognise nearly all lease arrangements on their balance sheet, something that significantly changes the way organisations report financial positions and obligations. Under the standard, entities must calculate and disclose a right-of-use (ROU) asset and a corresponding lease liability for each lease, based on future lease payments discounted over the lease term. This presents a complex challenge for ports. Their lease arrangements are not only extensive but highly diverse. These include land leased to logistics companies or industrial tenants, terminals and berth concessions operated under long-term agreements, multi-use warehouse facilities with shared operational responsibilities, marine infrastructure, such as cranes and vessels under usage-based leases, and commercial leases for office or retail premises on port property. Each of these agreements may come with distinct terms, some fixed, some variable, some based on CPI adjustments or throughput volumes, and many featuring renewal, termination, or modification clauses. As a result, applying IFRS 16 in the port environment means navigating a high volume of contracts with varied structures, durations, and conditions. It’s not only about compliance but also about maintaining financial accuracy, minimising risk, and being able to respond to audit scrutiny with transparency.
Why spreadsheets fall short
Despite the complexity of lease accounting in port operations, many finance teams still rely on spreadsheets to manage their compliance obligations. While spreadsheets may appear flexible, they introduce significant risk in high-stakes, high-volume environments like ports.
Lack of version control
Version control is one of the most common pain points. With multiple stakeholders - finance, legal, property, operations - each maintaining their own files or templates, it’s easy for data discrepancies to arise. One spreadsheet might reflect an updated CPI indexation; another might still use outdated terms. These inconsistencies create audit red flags and can undermine confidence in the reported lease figures.
Manual errors
Then there’s the risk of human error. Misapplied formulas, broken links, or incorrect discount rates can lead to material misstatements in financial reports. As IFRS 16 requires precise and consistent accounting of right-of-use assets, lease liabilities, depreciation, and interest expenses, even small errors can snowball into significant financial consequences.
Complex lease calculations
Manual systems also lack the ability to adapt to lease modifications, such as renewals, partial terminations, or changes in payment terms, which are common in long-term infrastructure leases. Every modification under IFRS 16 requires recalculating the lease liability and adjusting the corresponding ROU asset. Doing this manually is not only time-consuming but prone to oversight.
Limited auditability
Finally, spreadsheets offer little in the way of auditability. Regulators and auditors require a clear, traceable record of how lease accounting decisions were made - something that’s virtually impossible to maintain in static Excel files without proper change logs or automated controls.
Simplifying IFRS 16 compliance for ports
To meet the demands of modern lease accounting, ports are increasingly turning to digital solutions designed for complex environments. Nomos One is a cloud-based lease accounting and management platform built to address the unique needs of asset-heavy sectors like aviation, infrastructure, and ports.
Automated IFRS 16 calculations
One of its most critical features is the ability to automate IFRS 16 calculations. Rather than relying on manually maintained spreadsheets, Nomos One automatically computes lease liabilities and ROU assets based on the lease terms, including escalation clauses, CPI adjustments, and variable payments. It handles interest expense and depreciation schedules with precision and updates these figures in real time as lease terms change. This means port authorities can rest assured that every figure reflected in their balance sheet aligns with accounting standards.
Enhanced accuracy and visibility
The platform also equips finance teams with built-in reporting tools designed to validate lease information and help ensure accuracy before reporting. Instead of relying on manual checks that can easily miss inconsistencies, users can run reports that highlight discrepancies, confirm calculations, and give confidence that the data feeding into financial statements is correct. This reduces the risk of errors during audits and board-level reviews, creating a smoother compliance process and greater assurance for decision-makers.
Custom reporting for port-specific needs
Reporting flexibility is another key advantage. Ports typically need to generate reports across multiple dimensions - by asset class, location, contract type, or cost centre. Nomos One allows users to create tailored reports to meet both internal management and external regulatory requirements. Whether you’re segmenting leases by terminal zone or identifying CPI exposure across warehouse leases, the platform delivers instant visibility.
Cloud access for cross-team collaboration
Because Nomos One is cloud-based, it also supports collaboration across teams and departments. With secure access from any location, property managers, finance teams, and legal officers can all work from a single source of truth, reducing communication gaps and data inconsistencies.
Trusted by ports, auditors, and accountants
Nomos One has earned the trust of chartered accountants, auditors, and public-sector finance professionals across New Zealand and Australia. The recent onboarding of Port of Tauranga, New Zealand’s largest and busiest port, highlights the confidence that forward-thinking organisations place in the platform’s ability to deliver financial clarity, automation, and compliance at scale. By adopting a purpose-built lease accounting solution, ports are not just meeting regulatory standards, they’re unlocking operational efficiencies, reducing risk, and strengthening strategic decision-making with reliable financial insights.
IFRS 16 compliance is not optional, and in the port sector, where lease portfolios are vast and highly specialised, getting it right matters more than ever. Spreadsheets may have served their purpose in the past, but they’re no match for the complexity and risk of today’s regulatory environment. For port authorities and operators looking to simplify compliance, reduce audit pressure, and gain confidence in their lease accounting, Nomos One provides the clarity, automation, and control that manual tools simply can’t deliver. Compare your current lease accounting approach with a smarter solution - book a demo with Nomos One today!
