Compliance with ASC 842 and IFRS 16 in Microsoft Dynamics 365
The Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) have updated the lease accounting standards and regulations to increase reporting transparency.
ASC 842 and IFRS 16 affect both lessors and lessees. ASC 842 compliance is mandatory for all US companies, and IFRS 16 compliance is recommended.
Automate your Lease compliance
- Microsoft Dynamics allows you to change the configuration of leases, handle the amendments and modifications so you will automatically comply with ASC 842 and IFRS 16.
- Automate payments, inovincing, taxes and other accounting processes related to your leases.
- Keep ASC 842 and IFRS 16 processes in different posting layers.
Optimize your Leasee and Lessor processes
- Manage your lease revenue and expenses easily with Crowe’s Lease Accounting Optimzer..
- Change the configuration of your leases and adjust amendments when necessary winthin Microsoft Dynamics 365.
Important adjustments for your leases
- Now “to control” includes both obtaining most of the economic benefits generated by the asset and the direct use of the asset.
- Lease and non-lease assets need to be specified.
- Sales taxes have to be analyzed jurisdiction-to-jurisdiction to determine if the lessor should pay directly or if they should collect the amount corresponding to the tax from the lessee or another third party.