KPMG’s lease accounting technology solutions help you capture and account for leases under AASB 16.
With the introduction of AASB 16, entities are required to bring most operating leases onto the balance sheet. Leases previously recognised as off-balance sheet will now be accounted for as right-of-use (RoU) assets and lease liabilities, providing stakeholders with more transparency regarding an entity’s future leasing obligations. Some on-going reassessments may be required.
Given the increased reporting requirements, entities need a way to efficiently capture the necessary lease information and produce the relevant schedules and accounting entries for reporting under AASB 16.
KPMG has developed two accounting technology solutions that will help: the KPMG Lease Reporting Model and the KPMG IFRS 16 Accounting Tool. KPMG’s lease accounting technology solutions have been designed to assist in meeting your AASB 16 requirements and cater to your business needs.
Developed for accountants by accountants
Provides visibility and oversight
Fast and effective deployment
Ease of access and use
What do you want to do?
Please select the option that applies to you
Are you an existing KPMG audit client?
Do you have leases in different currencies that need to be translated?
Would you like the ability to generate IAS 17/AASB 117 numbers?
Would you like to let us do the lease accounting for you?
The Lease Reporting Model is an easy-to-use model to capture and account for leases under AASB 16.
The Lease Reporting Model is a simple, easy-to-use solution that generates the leasing schedule, Right of Use (RoU) asset and lease liability balances, as well as subsequent journal entries required under AASB 16 over the life of a lease. The solution allows organisations to efficiently track leases without the complexities and costs often associated with large accounting systems.
The Lease Reporting Model simplifies lease reporting through:
- Intuitive data entry: Lease information can be bulk imported or entered through a simple and controlled user form.
- Easy review: Generate lease schedules at the click of a button for the RoU asset, lease liability, payments, interest and depreciation.
- Focused reporting: Access a snapshot of the lease portfolio via dynamic dashboards. Lease work papers and journal entries can be generated for further review.
Easy setup tailored to an organisation's lease reporting needs Versatility to capture a variety of leasing scenarios Efficient to use, with a controlled workflow Reporting dashboard highlighting key financial impacts Calculations and assumptions are clear, traceable and auditable Developed and supported by accountants for accountants
Capture and account for leases under AASB 16 with this effective and efficient tool.
Entities are now required to bring most operating leases onto the balance sheet. Greater transparency about an entity’s lease commitments and changes to key financial metrics such as gearing ratios, asset turnover and EBITDA will therefore occur. Leases for assets such as property and equipment previously recognised off-balance sheet will now be accounted for as a right-of-use (ROU) asset and lease liability, and on-going reassessments may be required.
KIAT is an easy-to-use, cost effective solution that:
- Generates both AASB 16 and AASB 117 accounting entries, with AASB 117 entries useful when assessing impact against pre-AASB 16:
- Provides granular level journal entries (single lease, entity, asset type, other) that capture reassessments
- Produces annual and monthly projections of relevant items affecting income statement, balance sheet and cash flow – for up to 120 years
- Supports foreign currency translations
- Stress tested to support up to 6,000 leases
Reduces business disruption from the change in accounting standard. Provides oversight to organisations on their accounting and cash flow commitments in relation to their leases. Enables users to analyse and account for a wide variety of leasing scenarios – including complex reassessments and foreign currency. One-off payment for an ongoing solution presents a cost effective alternative to accounting systems. Tool requires no tailoring. Reduces the need for additional resources to meet the new accounting requirements of this standard. Runs remotely so no internet connectivity is required. The tool can be used anywhere in the world.
KPMG’s managed service providing complete, accurate and timely lease accounting.Find out more