Path in CC5: Contracts - Reports - IFRS 16 report
To open the IFRS 16 report, click Contracts - Reports and select IFRS 16 report in the menu to the left.
Select “Global” to show all agreements for the entire group, grouped by functional currency for each period. Select the tab for an individual legal entity to show the contracts associated with each specific company defined in the system.
Select the year the report should include and whether the report should accumulate the figures monthly, quarterly or yearly. It is also possible to export the report to Excel.
Please note that the report is not a consolidation report for the group.
Tip!
Click the “+” next to the text in the report to show how the totals break down by contract category. In addition, these figures can be expanded to see how the totals for each contract category break down by individual contract. Click “+” again, and the view will be further expanded to show totals per contract.
Lease liabilities
Opening Balance: In the first period of implementation, there will be leases here that were entered into before the date of implementation of IFRS 16 and that were recognized in the balance sheet according to the old standard. This means that the commencement date is prior to the implementation period and that the contract is classified as a “Finance lease”. Insubsequent periods, the opening balance of each period will be equal to the closing balance of the previous period and will encompass the entire portfolio of IFRS 16 leases.
Implementation effect: Leases entered before the date of implementation of IFRS 16 and that were not recognized in the balance sheet according to the old standard. This means that the contract’s commencement date is prior to the implementation period and that the contract is classified as an “Operating lease”.
Additions: New contracts for the period. Contracts entered into after the implementation date will be included in the balance sheet as an addition in the period based on the commencement date stated in the contract. Additions in January therefore have a commencement date between 1 and 31 January.
Adjustments: If a reassessment of the lease liability is undertaken and the system corrects the lease liability as a result of a KPI adjustment or similar, this will be shown here.
Currency adjustments: Here the effect of exchange-rate changes is shown, for contracts entered into in foreign currencies. The system calculates the effect of changes based on the exchange rate at the end of each monthly period. For the current month, the effect is shown based on the last available exchange rate.
Lease payments: Lease payments due for payment in this period.
Interest: Interest costs calculated at the discount rate.
Termination settlements: Residual lease liabilities recognized in the balance sheet on the termination date. Applies when the contract is terminated before the expiry of the lease term.
Closing Balance: The closing balance for the lease liability is equal to the opening balance for the following period. The opening balance of each period should at all times be equal to the discounted cash flow for the future lease payments on the contract.
Portion of lease classified under current liabilities: The portion of the lease liability that is due for payment within the next 12 months.
Portion of lease classified under non-current liabilities: The portion of the lease liability that is not classified as current liabilities.
Right of use
Opening Balance: In the first period of implementation, there will be leases here that were entered before the date of implementation of IFRS 16 and that were recognized in the balance sheet according to the old standard. This means that the commencement date is prior to the implementation period and that the contract is classified as a “Finance lease”. In subsequent periods, the opening balance of each period will be equal to the closing balance of the previous period and will encompass the entire portfolio of IFRS 16 leases.
Implementation effect: See above
Additions: See above
Impairments: Impairments for the period.
Adjustments: Adjustments to the lease liability are transferred to right of use. If the adjustment is negative and the right of use has been reduced to zero, the remainder should be recognized in the income statement.
Depreciation: Depreciation for the period. In Complete Control, straight-line depreciation is used.
Terminations: Residual right of use recognized in the balance sheet on the termination date. Applies when the contract is terminated before the expiry of the lease term. Also includes right of use recognized in the balance sheet for assets transferred to the lessor at the expiry of the lease term, where the right of use is depreciated over the asset’s useful life.
Closing Balance: The closing balance is the opening balance for the next period.