Transition made easy with Progen
Progen supports all three transition methods and offers full transparency of individual lease treatments under IFRS 16. That way, you can feel confident presenting the numbers to your auditor. Detailed word-leading reporting and analytics allow for accurate data and business insights. Report at individual, groups portfolio or different business entities.
For many businesses, the transition of moving from operating leases to finance leases is a challenge. It involves finding the right processes, correct data and requires property and finance teams working closely together with other departments such as procurement and compliance. A lease and property management solution provides you with all vital source data held in one place and minimises the risk of double-entry when using multiply platforms. Progen works as a full accounting suite, but can as easily produce all outputs for journals to be directly transferred to your usual finance system.
And if you’re not ready to let go of your loved spreadsheet just yet, the software allows you to export all automated calculations to Excel.
Designed to tackle the challenges with Property Leases
- Specialised in commercial property
- IFRS 16 calculation leverages on detailed lease and property data
- Lessee and Lessor structure (sub-leasing)
- 4-4-5 calendar and advanced retail-specific measures
- Present and fair value calculations
- Unlimited customised data fields
- Automated estimates of property lease financials
When lease accounting became a necessity
International accounting standard IFRS 16 has forever changed the way organisations manage their lease processes. The standard does not only force businesses to recognise their lease liabilities and ‘right to use assets’, but also to find a solution that can calculate the lifetime value and handle forecasts or remeasurements of any lease components.
Property leases, in particular, requires specific treatments due to its level of complexity around these figures. Not only would you have to accounter for lease renewals and options, but also any changes in rent (e.g. CPI reviews, percentage rent and outgoings deductions) for the whole term of the lease.
Although it may be possible to calculate lease projections on a spreadsheet, it gets very quickly complicated, and there is a high risk of getting the numbers incorrect, which could have a significant impact on your financial reporting. It could also lead to a qualified audit report.