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IFRS 16 Lease Accounting Software
IFRS 16 changed how leases show up on your balance sheet. Unit4 FP&A includes a dedicated lease management application for recognition, measurement, and disclosure, helping your team stay compliant with less manual effort.
Implement lease accounting faster
IFRS 16 requires lessees to recognize all leases on their balance sheet, improving reporting accuracy and transparency. For many finance teams, that creates a significant shift in how lease data gets captured, calculated, and reported.
Unit4 FP&A includes a dedicated lease management accounting application to enable the recognition, measurement, presentation, and disclosure of leases as set out in international standards such as IFRS 16 and UK & Ireland standards such as FRS 102.
Watch this recorded demo to see how Unit4 handles IFRS 16 lease accounting in practice.
Key capabilities of Unit4's IFRS 16 software
Balance sheet visibility
Identify the effects of each leasing contract on your balance sheet. See how every lease impacts your financial position without manual aggregation.
Lease KPI tracking
Track lease P&L, liability, and asset KPIs across IFRS 16 and FRS 102 standards. Get a clear picture of your lease portfolio's financial impact at any point in time.
Simulation and analysis
Model different scenarios with intuitive simulation tools and visual analysis options. Understand the full picture of your lease obligations before making decisions.
Why do changes to Lease Accounting matter?
For professional
services firms
IFRS 16 is applicable to those preparing financial statements under International Financial Reporting Standards. Organizations must recognize lease liabilities and right-of-use assets on balance sheets. It applies to most leases, impacting assets and liabilities on financial statements.
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For public
sector bodies
IFRS 16 mandates the recognition of lease liabilities and right-of-use assets on balance sheets, enhancing transparency and comparability. Effective from April 2024. This is applicable to all who report accounts under Generally Accepted Accounting Practice (UK GAAP) for annual accounts).
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For nonprofit
organizations
The impact of lease accounting is as part of FRS102 included in Charities Statement of Recommended Practice (SORP). Nonprofits must recognize leases on balance sheets from January 2026. They must disclose lease liabilities, right-of-use assets and related expenses.
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Ensure public sector lease compliance with IFRS 16
IFRS 16 lease accounting standards are now in force for public sector organizations. If you’re still using legacy software to manage lease accounting, this will create extra manual work for your finance teams.
What is IFRS 16 and how will it impact organizations?
Read our blog to discover more about the challenges organizations will face as they transition to the new lease accounting standard and how Unit4 can provide a cloud-based solution.
A better way to manage leases
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Automate the import of leasing contracts and database-driven recording.
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Multi-user, secure data storage and transparent calculations.
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Identify the effects on your balance sheet, P&L and KPIs with a single click.
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Monitor adjustments to scope of leasing terms with ease.
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Manage the impact of leasing KPIs with external stakeholders such as investors and lenders.
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Simulation and analysis options (including visualizations).
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Compatibility with all ERP or consolidation systems.
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A cost-effective and easy to implement (5-10 days) cloud-based solution.
How to comply with lease accounting standards
Step 1: Import your lease contracts
Import or use database-driven recording of your company or group's leasing contracts into Unit4 FP&A.
Step 2: Identify accounting effects
See the effects on accounting for each contract and aggregate them by any dimension you need: contract group, company, cost center, or at group level.
Step 3: Transfer data to your ERP
Create a posting template to transfer data to your ERP or consolidation system to adjust your (consolidated) financial statements according to IFRS 16.
Using the Unit4 IFRS 16 software solution, we can import all of the lease contracts quickly and easily. We can then identify the effects of accounting for each contract, and aggregate those to different cost centers.
Robert Abery
Management Accountant, East of England Ambulance Service NHS Trust
Trusted worldwide by organizations that serve people
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Frequently asked questions
What is IFRS 16?
IFRS 16 is the International Financial Reporting Standard for leases. It requires lessees to recognize nearly all leases on their balance sheet by recording a right-of-use asset and a corresponding lease liability. The standard replaced IAS 17 and aims to bring greater transparency to how organizations report their leasing obligations.
Who needs to comply with IFRS 16?
Any organization preparing financial statements under International Financial Reporting Standards must comply with IFRS 16. In the UK, public sector bodies have been required to apply the standard from April 2024. Nonprofits follow related requirements under FRS 102, with key compliance dates from January 2026.
How does Unit4 help with IFRS 16 lease accounting?
Unit4 FP&A includes a dedicated lease management application that automates the import and recording of lease contracts, calculates right-of-use assets and lease liabilities, tracks relevant KPIs, and generates the data needed for financial statement adjustments. It supports both IFRS 16 and FRS 102.
How long does it take to implement Unit4's IFRS 16 solution?
Most implementations take between 5 and 10 days. As a cloud-based solution, there's no heavy infrastructure setup required, so your team can be up and running quickly.
Does the software support standards beyond IFRS 16?
Yes. Unit4's lease accounting application also supports UK and Ireland standards, including FRS 102. That makes it suitable for nonprofits and other organizations reporting under different frameworks.