Financial Leases

These contracts fall into the category “with implicit rate” according to IFRS 16 standard.

Information needed are the following ones:

  • Contract code
  • Contract name
  • Contract description
  • Type of asset (a list is proposed – we can create new categories if needed)
  • Operating level
  • Commencement date
  • Payment frequency (monthly, quarterly, annual, bimonthly, half yearly)
  • Duration (in months)
  • Depreciation duration of the underlying asset (because it can be valued according to IAS 16)
  • Total costs
  • Periodical lease amount -First majored lease (optional)
  • Residual value

eLease16 calculates the implicit rate of the contract so that after payment of all rental charges, the remaining due amount is equal to residual value.

Debt repayment table is calculated, as well as asset depreciation table. All calculation impacts are done over the entire duration of the contract, year per year (considering the closing date of the Entity or BU). Calculations can be exported under Excel format.