LOIS is proud to announce an alliance with Deloitte and their IBR calculator, which we think is the perfect complement to LOIS to make your IFRS 16 compliance even easier!
As I’m sure you are aware, IFRS 16 requires you to largely include all leases on your balance sheet, shown as a present value calculation. The key driver to calculating the present value is your incremental borrowing rate (IBR) for every single lease, unless you are lucky enough to have an IRR.
We know that determining your IBR represents a significant challenge in implementing IFRS 16. The contention around what your IBR should be has led to businesses calculating their IBR based on multiple assumptions. And while everyone must make this judgment, where companies are getting into trouble is when their auditors don’t agree on their IBR and the company can’t show the logic behind their calculation.
Therefore, we have partnered with Deloitte to offer an easy-to-use and innovative digital application that helps you calculate an IBR tailored to your business, and in compliance with the new accounting standard. By using Deloitte’s IBR Calculator, it will provide you with a detailed analysis of your lease portfolio, incremental borrowing rate methodology, and provide you with accounting choices that comply with IFRS 16.
Additionally, the calculator can generate IBR for multiple lease currencies and up to 100 years lease tenors within minutes. With the requirement to update your IBR with any modification this will really make getting the correct variables much easier.
Quadrent’s CFO Stefan Iggo commented on the alliance, “Our goal at Quadrent and especially through our LOIS offering, has always been to make our client’s job easier and the complicated process of calculating IBR is a topic that we get asked about regularly.
Therefore, we are delighted to work with Deloitte on promoting this tool in conjunction with LOIS. It takes the guess work out of IBR. By inputting your variables, you get a Deloitte verified IBR and then you can let LOIS do the heavy lifting, making your job of IFRS 16 compliance even easier.”
Remove the subjective judgment and have confidence that your IBR is calculated and developed by global accounting experts. For more information, please visit - https://ibr.deloitte.com. Or contact Damon Kennedy at damon.kennedy@quadrent.com.au for a subscription price specifically for LOIS customers only.
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