By Alexa Gavin
There are plenty of different factors which impact the lease contract itself and the options related to it. Lease modifications or amendments have to be transposed to the balance sheet and have an impact on it. Thus, lease modification agreement management is important and has to be taken care of. But how do you manage such a specific and demanding area of accounting? Well, the best way is to use advanced yet intuitive lease modification accounting software SOFT4Lessee. Let’s see what benefits does it bring to your business!
SOFT4Lessee meets lease modification needs for IFRS 16 and other accounting standards
Transitioning to the new accounting standards – IFRS 16/ASC 842/AASB 16 is quite challenging. However, if you have the right tools at hand, lease modification accounting becomes that much simpler. Companies with large portfolios of operating leases will have to change the way they do lease accounting. By including operating lease figures in the balance sheet, your company will have to carry the load of more accounting-related tasks which fall on the shoulders of your financial accounting staff. Doing manual work and making changes on paper is difficult enough. SOFT4Lessee makes the processes and staying compliant much more streamlined and tailored to your company’s needs. From minor switches, all the way to reviewing major lease modifications with IFRS 16 accounting standard, the software can meet a wide range of business-related needs.
Make amendments and changes with ease
Our experience shows that lease modification agreement tracking is one of the trickiest things to do for businesses that have a lot of operating lease agreements on their hands. With software that’s based on Microsoft Dynamics NAV (which most of us are familiar with), doing even the most demanding and complex tasks becomes a lot easier.
SOFT4Lessee can help your business:
- Detect changes to leases
- Calculate the impact of those changes
- Re-assess records and various figures
- Make manual status and spec changes to any particular agreement that’s listed on your platform
The software is able to recalculate projections of leasing liability and make data transition between various ledgers and documents smoother and simpler.
Fix whatever was wrong – modifications of lease agreements in the past
If the changes need to be listed as past (or have an effective date in the past) and their records are late, SOFT4Lessee has you covered. Because it has the ability for modification of lease agreement post-factum, you can definitely make the necessary alterations after the fact.
In general, the system should allow for retrospective changes. This is a feature that most businesses and accountants who deal with operating leases, could benefit from. Even if the G/L period is closed, you can still make alterations retrospectively and fix whatever inaccuracies might have been there.
