IFRS 16 is complicated. When it comes time to review your balance sheet and profit and loss accounts at the end of the reporting period, it can be challenging to get an intuitive feel for how these numbers are made up. This isn’t surprising, as up to 50 different components can be included in an individual lease agreement calculation, and this is before we start accounting for any changes to this information.
That’s why we have put together the three most important reasons your team needs to include the Daily Calculation Report (DCR) as part of your Nomos One lease accounting toolkit.
Getting to grips with the detail
The DCR uses the language of accountants to establish precisely how each balance sheet and profit and loss account is calculated over every day of the lease. This spreadsheet uses formulas & cell referencing to give the entire financial model of the lease for the information currently entered through the agreement.
This allows users to get in behind the numbers and see how their balance sheet accounts are calculated at a time that otherwise would be a number on a screen.
Understanding the payment series (the bread & butter of lease accounting)
If you want to understand something, first you need to understand its underlying mechanics.
The mechanics of lease accounting all come down to the payment series. The payment series is the projected lease payments extending over the expected life of the lease, and these payments are then discounted back to reflect the lease liability.
As the payment series extends into the future, assumptions have to be made around what the rent might be when there are lease events such as CPI rent reviews, market rent reviews etc. New information is added to the model as the future becomes the present. Adjustments are made to the payment series to reflect the actual rent amounts agreed upon following the market rent review (for example).
The DCR has a tab showing all of the different payment series that have been active at various points during a lease’s life. This allows a user to quickly check changes made to the payment series and review that the current payment series makes sense.
Dunedin, New Zealand – 07.06.24
A journey of growth and innovation
Nomos One, a pioneering tech startup specialising in lease management and lease accounting software, is excited to announce its acquisition by EXA Capital, a leading global finance and technology firm. This acquisition marks a significant milestone in the growth journey of Nomos One, reflecting its evolution from a local Dunedin startup to a key player on the international stage.
Founded in Dunedin in 2011, Nomos One has rapidly expanded its footprint in the lease management and lease accounting space, providing innovative solutions that streamline complex lease processes for businesses worldwide. The company’s journey from a small startup to an industry leader underscores the vibrant entrepreneurial spirit and technological prowess within New Zealand’s tech ecosystem.
Key highlights of the acquisition
- Strategic Growth: The acquisition by EXA Capital will enable Nomos One to accelerate its growth and continue to innovate in the lease management and lease accounting spaces, leveraging EXA Capital’s extensive resources and global network.
- Technological Advancements: Nomos One’s software solutions will be further enhanced through this partnership, providing even more robust and efficient tools for its customers at a faster rate of delivery.
- Global Expansion: With the support of EXA Capital, Nomos One is poised to expand its reach and impact, bringing its innovative solutions to new markets and industries around the world.
Leadership perspectives
- Andrew Paykel, CEO of Nomos One: “We are incredibly proud of how far Nomos One has come since our inception in Dunedin. Being acquired by EXA Capital is a testament to the hard work and dedication of our team. I would like to acknowledge Jonny Mirkin as founder whose contribution set the company on a path of international expansion. We are excited about our future with EXA. This partnership will open new growth opportunities and enable us to continue delivering exceptional value to our clients.”
- Omer Sajid, CEO & Founder of EXA Capital: “We are excited to have Nomos One join our portfolio of companies and to collaborate with Andrew and the Nomos One team to scale new heights globally, whilst protecting the brand equity and strong culture that Nomos One has cultivated over the last 13 years.”
- Scott Mason, exiting-Chairperson: “The Board of Nomos One were delighted to secure a purchaser in EXA who would continue to act as a custodian into the future, protecting the legacy of Nomos One primarily in Dunedin and creating future opportunities for our team. This transaction is also an important milestone for the Southern early-stage investor community.”
About Nomos One
Nomos One is a leading provider of lease management and lease accounting software solutions, designed to streamline and simplify complex lease processes for businesses of all sizes. Founded in Dunedin, New Zealand, the company specialises in helping businesses achieve compliance with IFRS 16, ensuring they manage their lease obligations with accuracy and transparency. Nomos One has grown significantly, serving clients across various industries worldwide.
About EXA Capital
EXA Capital is a global finance and technology firm dedicated to investing in and growing enterprise software businesses. Unlike traditional private equity or venture capital firms, EXA Capital provides a permanent home for its portfolio companies, focusing on long-term strategic alignment and growth. Their expertise in software and technology, combined with a collaborative approach, ensures that companies like Nomos One can achieve sustainable success and innovation.
For more information, please contact us at www.nomosone.com/contact-us
