Representing leases transparently
IFRS 16 generally requires lessees to recognize a right-of-use asset and a lease liability. Exemptions include short-term leases and leases for low-value assets. Contract data, measurement and accounting processes therefore become one connected business and technical flow.
Data, measurement and posting logic
- Identify contracts and embedded lease components
- Capture terms, payment schedules, options and discount parameters
- Measure the right-of-use asset and lease liability initially
- Generate periodic postings and subsequent measurement transparently
- Process modifications, reassessments and terminations in a controlled way
From contract to subsequent measurement
A reliable implementation needs clear data ownership, documented measurement rules and coordinated interfaces between contract management, accounting and reporting. Controls should show which assumptions and contract changes triggered each posting.
Considering business and SAP together
Before technical implementation, the contract portfolio, organizational responsibilities, measurement methods, required reporting and existing SAP landscape should be reviewed together. This shows which requirements fit standard functions and where further clarification is needed.