From January 1, 2019 onwards the new IFRS 16 standard requires the lessee to use only one single accounting model by which all leases have to be documented in a reportable manner. This also applies to tenancies, such as the rental of equipment, copy machines, office space or company vehicles. In consequence, firms have to prepare for significant additional efforts and costs. Moreover, existing leases need to be reassessed and missing data gathered for invoicing.
The contract management solution cuContract specifically addresses the new requirements of IFRS 16. It processes theinventory of the contracts in an automated manner via a range of interfaces with the SAP system, which leads to shorter handling times.
In addition, cuContract also facilitates the required re-evaluation of the leases as all of the data, contracts and payment flows can be seen at a glance in the electronic record. Data that has not been captured for invoicing yet can be added at any time. The notes function makes it possible to document the decisions made during the evaluation process in an audit compliant manner and thus to fulfill the obligation for documentation stipulated by IFRS 16.
cuContract helps you to fulfill the new requirements of lease accounting in line with IFRS 16.