Contract card

In view mode, click the dot menu to e.g. Edit, Copy (if available) or Delete.

Note!
The view mode displays only fields with registered content. To view all available fields, switch to editing mode.

Click to expand or collapse all sections (except for some minor sections such as the Changelog or Roles).

Template: Only displayed if multiple contract templates are available.
When creating a new contract, you can select the default template for contracts or optionally a custom template. It is the system administrator who can create new custom templates under System settings.

Note!
You can change the template also after registration. But be careful as you might lose some data: Different templates might require different content, and by changing the template existing content can get lost.

Is this contract subject to DORA (Digital Operational Resilience Act)? This question is only displayed if you have the DORA module. Usually, the DORA expert in your company will switch it on. Other users can ignore it. Once switched on, the additional sections DORA contractual arrangements and Supply chain will be activated with DORA-related fields. Read more here.

Title: Free text field. Add a descriptive title, for example, "Cleaning service Bright".

Contract partner: Select the contract partner from the drop-down menu. If a contract partner does not exist, select "Add" to create a new partner. See a separate description for this under System settings.

Type: Select from a "Customer Contract", "Supplier Contract" or "Partner/Framework Contract". Changes to the options here can be made in the System Settings under Contract system settings for types.

State: Select "Active" or "Inactive" status from the drop-down menu. Changes to the options here can be made in the System Settings under Contract system settings for states.

Responsible employee: Select the responsible employee for the contract. This person will e.g. get automatic notifications in case of contract expiration, contract termination and annual review of ongoing contracts. It must be registered under People,

Signed by: Registers who has signed the contract. The field retrieves information from "People".

Category: Select the category from the drop-down menu. Changes to the options here can be made in the System Settings under Contract system settings for categories.

Department: Select the department from the drop-down menu.

Location: Option to register the geographic location.

Contract reference: The name of the contact person or a number.

Labels: It is possible to label the contract with a specific color/text combination. Find existing lables in the list or click Add to create a new label.

Notes: Use the notes field to add important additional information. The information is also included on event notifications. For dynamic information (e.g. questions and answers), use the comments field instead.

Tip!
Notes can also be displayed in the overview list. Open the column selector and check Notes. All information entered in the notes field can later be searched for using the free text search.

Once Is this contract subject to DORA (Digital Operational Resilience Act)? has been switched to Yes, this section is activated and DORA-relevant fields are displayed. Read more here.

Note!
DORA-related fields must be entered by a person with expertise and knowledge of the required codes. House of Control AS can assist you with guidance on the process, but not with specialist knowledge on DORA.

Once Is this contract subject to DORA (Digital Operational Resilience Act)? has been switched to Yes, you can create a supply chain. Read more here.

Note!
DORA-related fields must be entered by a person with expertise and knowledge of the required codes. House of Control AS can assist you with guidance on the process, but not with specialist knowledge on DORA.

Start date: Start date for the contract. Select from the calendar or use the format [ddmmyy].

Notice period: Select how long in advance you must terminate the contract (not at all, 1 months, 2 months, etc.).

Tip!
If your contract has a notice period in days, choose the month that includes those days (e.g. 1 month for 15 days notice or 2 months for 45 days notice). This will ensure that the system notifies you well in advance of your termination date.

If you have an active notification on the contract, you can complete it in this section. Read more under Which standard notifications are being sent?.

Currency: The currency of all payments for the contract. All payment schedules must have the same currency.

Create Payment Schedule: Allows you to register the payment details. It is possible to register several payment schedules for a contract. The information from the payment schedule forms the basis for the reports. Read also How to create a new payment schedule.

Detailed calculations: Click this link to open a detailed list with the payment calculations with both gross and net amounts. The calculation lists on the Overview tab obligations, outgoing cashflow, net receivables and obligations and net cashflow. The Cashflow tab lists outgoing and incoming cashflow.

View/Edit: Click to view/edit an existing payment schedule. Only in editing mode all fields are displayed.

Copy: Click to arrow next to Edit and select Copy to copy an existing payment schedule. The new payment schedule opens in editing mode, and you can do your adjustments.

File attachments: Upload file attachments related to the contract. There is no limit to the number of file attachments, and the most commonly used file formats are supported. File attachments can be added by selecting Upload File under the three dots to the right of the screen, or by using the "drag & drop" function. See more about files under Explorer.

Maximum file size is100 MB. You can add several files of this size.

Tip!
 Click for more options. You can e.g. create folders to collect old contracts or attachments in an archive.

Related assets: Option to link the contract to an asset, for example, a leased car and the related toll transponder. Read more under How to link contracts and assets.

Related contracts: Option to link the contract to other contracts, for example, a framework agreement and the underlying leasing contracts. Read more under How to link contracts and assets.

Comments: The comment field can be used as a work log, with information on the time of the comment and who wrote it. The comments are visible to anyone who has access to the entry. Access may also be granted to enter comments in read mode.

This section is only displayed if you have the optional module IFRS 16.

Tip!
Before registering your first IFRS 16 contract, watch the videos in this section. You can also read our description here.

Classification

This contract contains a lease according to IFRS 16:Defines that this contract qualifies for IFRS 16 reporting.

Lease type

Operating lease and Finance lease: A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset at the end of the lease term. Otherwise a lease is classified as an operating lease. Note that both variants are equally important for IFRS 16 reporting. When registering a sublease structure, the financial lease type will be selected automatically.

Options

Before you get started!
When registering an IFRS 16 contract, you must consider if the contract applies to certain "exemptions" or not. Note that you must also report IFRS 16 contracts that are part of these exemptions. Read more about the exemptions under https://ifrscommunity.com/knowledge-base/scope-of-ifrs-16/.

• Use exemption for short term leases: Short-term leases with lease term of 12 months or less given the lease has no purchase option are one of the exemptions. The selection must be made on a class-by-class basis, e.g. the category of the underlying assets. If your leasing contract fulfills exemption conditions, tick the checkbox.

• Use exemption for low value assets: As lessee you may not apply to IFRS 16 requirements for leases if the underlying asset is of low-value (5 000 USD per January 2022). Note that the value of the asset as new is assessed. Also, the asset cannot be highly dependent on or highly interrelated with other assets. There are also some other rules as described in the link above. If your leasing contract fulfills exemption conditions, tick the checkbox.

This contract is part of a sublease structure: If the contract relates to an asset that is either a headlease of a sublease in a structure (with headlease), tick this checkbox. Then, select under Sublease if this is the Headlease or a Sublease. For subleases, select also the related Headlease. Note that you must register the headlease first. Once done, you can register its subleases. Read more here.

Lessee is reasonably certain to acquire title of ownership: This is usually the case for finance leases and means that the lessor transfers ownership of the underlying asset to the lessee by the end of the lease term. As a consequence, the depreciation period will last from commencement date to the end of the useful life of the asset. Therefore, you must now also enter the Economic lifetime. Also, the type of lease should often be Finance lease. Read more here.

Recognize pre-assessed lease: This is an option for existing leases that are already assessed where the lease liability and right of use shall be recognized from the balance sheet. Use this option when migrating to CC5 from other IFRS 16 reporting systems. When selecting this option, the button Add assessment is displayed, and you can enter the lease liability opening balance and the right-of-use opening balance at recognition date. Read more here.

Lease term

Here, you enter the various lease terms that are defined in the contract.

Commencement date: Pre-entered with the Start date of the contract. The commencement date of the lease is defined as the date on which the lessor makes an underlying asset available for use by the lessee.

Non-cancellable term: Pre-entered with the Initial period, but can be overwritten.

Extension period: For contracts with extension options. All active extension options (Extension exercised is ticked) are pre-entered. You can overwrite the value if your extension considerations related to IFRS 16 standard are not identical with the choices above.

Economic lifetime: You can use this field to highlight situations where the economic lifetime (depreciation period) of the asset is shorter than the lease period. You must enter this field if the asset shall be acquired after the lease period (remember to tick Lessee is reasonably certain to acquire title of ownership), and the asset shall be depreciated during the agreed on leasing period. In all other situations, leave the field empty.

Lease term: Combination of fields Non-cancellable term + Extension option.

Depreciation term: Combination of fields Non-cancellable term + Extension option unless requirements for economic lifetime are fulfilled. In this case, the Economic lifetime value is used.

End of lease: Combination of fields Non-cancellable term + Extension option.

Financial assessments

Accounting currency: The accounting currency for this company as defined in the system settings for contracts.

Discount rate: The interest rate as defined in the contract. If it is not defined, use the lessee's incremental borrowing rate.

Initial direct costs: If there are any direct costs related to this lease, you can enter them here.

Restoration costs: If the contract states that you must pay any restoration costs after the lease period, you can enter them here.

Measurements

Add initial assessment: If the contract has not been assessed before, click here for the initial assessment. Note that you must have entered all other fields for IFRS 16 registration before and added a payment schedule with IFRS 16 classification. Complete Control will start calculating liability and right of use for the lease period. And you can view and download the report under View detailed calculations.
Read also Step 4: Add initial assessment

Add impairment: If your company no longer expects to recover the cost of the lease through operation, or disposal, the right-of-use asset can be impaired. This is only possible after initial assessment. See also How to impair leased assets.

Add reassessment: Reassessments can be necessary if you made changes to the lease payments to an ongoing contract. Read also How to handle reassessment and modifications.

Here you can view all changes that have been done for this record, including data, time and responsible. This does e.g. also include files which were added or removed and changes to fields.