IFRS16 System Selection Checklist
Why a checklist?
There are many solutions for IFRS 16 on the market ‘“ some offer lease management with basic IFRS 16 capabilities, some with little or no lease management ability but with more of a focus on IFRS 16 and some that utilise board assumptions for modelling (that cannot be used for accounting).
The IFRS 16 technical capabilities of your chosen solution are also key ‘“ IFRS 16 is hugely complex in the actual real-life application. Many solutions are badged as ‘˜compliant’™ but actually have to utilise short cuts that leave the question of compliant accounting wide open.
It is therefore important that your selected solution includes the range of capabilities needed, technical compliance and also avoids the need for a stop-gap solution now (to model) and one later on for the accounting.
Before committing to a solution for new lease accounting, the following points should be considered. IFRS16 compliance is an enormous challenge in itself, but longer-term considerations are much broader and more complex than they might seem: