IFRS 16 Calculator
The “IFRS 16 Calculator” is an advanced tool designed to accurately calculate parameters related to lease agreements in accordance with the International Financial Reporting Standard (IFRS) 16. This tool enables companies to precisely calculate the key values required for proper recognition of leases in financial statements, in line with IFRS 16 requirements.
Features of the IFRS 16 Calculator:
Calculating the Right-of-Use Asset Value: The calculator precisely computes the value of the right to use a leased asset, which is essential for recognizing it on the company’s balance sheet. The tool takes into account factors such as the lease term, interest rates, and any lease payments.
Calculation of Lease Liabilities: The tool calculates the value of liabilities arising from the lease agreement, including the principal amount and interest, which must be recognized in the liabilities section of the balance sheet. This allows for accurate accounting of the lease at each stage of its term.
Amortization of the Right-of-Use Asset: The IFRS 16 Calculator helps to calculate the amortization of the right-of-use asset over the lease term in compliance with IFRS 16 guidelines.
Interest Calculation on Lease Liabilities: The tool automatically calculates the interest to be recognized in the income statement based on lease liabilities.
Comparison of Polish Accounting Standards (UoR) vs IFRS 16: The calculator enables a comparison of results obtained under Polish Accounting Standards (UoR) with those calculated according to IFRS 16, providing better insight into the impact of the new standards on the company’s financial statements.
Benefits of Using the IFRS 16 Calculator:
Accuracy and Compliance with Regulations: The tool ensures precise calculations and full compliance with IFRS 16 requirements, which is critical for companies seeking to avoid errors in their financial statements.
Time Savings: The calculator automates complex calculations, significantly reducing the time needed to prepare data for reporting.
Risk Management: By comparing results according to UoR and IFRS 16, companies can better understand and manage the risks associated with implementing the new standards.
Support for Financial Decisions: Precise calculations allow companies to better plan and manage lease liabilities, leading to more informed financial decisions.
The “IFRS 16 Calculator” is an essential tool for companies that want to effectively and compliantly manage their lease agreements, minimizing the risk of errors in financial reporting.
