NTT DATA Business Solutions Logo

Getting Ready for IFRS 16/PSAK 73

Prepare for the new annual reporting model.

image
IFRS 16 (PSAK73) for SAP

About IFRS 16/PSAK 73

IFRS 16 (or PSAK 73 in Indonesia) specifies how the financial reporter will recognize, measure, present and disclose leases by recognizing assets and liabilities arising from a lease. The objective is to accurately report information of lease transactions and provide a faithful basis of financial statements to evaluate the amount, timing, and uncertainty of cash flows derived from leases.

The standard requires a lessee to disclose leased assets and liabilities with a term of more than 12 months, unless the underlying asset is of low value – establishing a single lessee accounting model.

In Indonesia, the government has declared the application of IFRS 16/PSAK 73 compulsory to annual reports beginning on 2020. At NTT DATA Business Solutions Indonesia, our financial consultants and IT experts can support each and every step in the implementation of the new accounting standard. This way, you can ensure that your financial report is transparent, compliant, and cost effective.

IFRS16 / PSAK73 for SAP

Simple way to produce IFRS16 (PSAK73) report

By posting once a month and creating a new master contract for each new contract that is required. There are just four basic stages, in addition to implementing PSAK 73.

  1. Identifying contract, on this step, we separate between contract lease and non-contract lease manually, that input the contract lease on a predefined template and use mass upload form NDBS.LAR feature
  2. Calculate the leases, automatic calculation based on the contract we just uploaded and can generate NPV value, RoU, Lease Liability, Interest, Depreciation, and Accumulated Depreciation.
  3. Create Simulation, we can check the schedule and simulation calculation for every period of payment period before posting to FI document.
  4. Reporting, generate a report from all the data input, no more adjustment or calculate to generate a report

NDBS.LAR: The Right Solution for Lease Account Report

NDBS LAR is natively built on SAP Platform. The solutions were specifically created to help customers simplify and automate compliance with the new IFRS 16/PSAK 73 lease accounting standards.

The NDBS LAR is flexible, ready to use and already integrated with FI posting documents. The solution can cover various use cases for all your business needs will support each and every step in the implementation of the new accounting standard. This way, you can ensure that your financial report is transparent, compliant, and cost effective.

NDBS LAR Configuration

Configure

Enable to make settings according to report requirements, such as segmentation of buildings, vehicles and type of expenses.

Contract Management

Create, Change, Display and Mass Upload Contract all available, making it easier for users to maintain

Calculation

A tool to automatically calculate all leases, including the changes to the contract in time or price and early terminate contracts. All these calculations are created based on LAR logic.

Reporting

An entity is also required to disclose information about the assumptions It makes about the future and other major sources of estimation uncertainty at the end of the reporting period that have a significant risk of resulting in a material adjustment to the carrying amount of assets and liabilities with the next financial year.

Posting

The T-code that will be run for each period

Benefit of NDBS LAR

Ready to use
NDBS LAR is a ABAP solution by NTT DATA Business Solutions simplifying your solution
Use case features
NDBS LAR provides some use cases
Integrate with FI posting document
All the process that produce a FI document are integrated to FI module, included adjustment and reversal process
Easy contract adjustment
Adjustment the contract is easy as change the contract master data
Automatically journal and calculate RoU, lease, liability, and interest
Automatic calculation based on the contract we just uploaded and can generate NPV value, Lease Liability, Interest, Depreciation and Accumulated Depreciation.
No license and no annual fee
No more payment or recurring payment after implementation

Speak to Us Today

Are you searching for answers or would like to receive more information on IFRS16/PSAK73? Do you want more detailed advice from our expert or wish to book one of our NDBS.LAR (Lease Accounting Report) workshops?

Just contact us – we will be glad to help you.

    I can withdraw my consent at any time without giving reasons. For more information, please review our privacy policy.

     

Contact Us
Contact Us

Have questions? Please contact us.

Call us at
+62 21 531 92000
Send a message