Lease Accounting for IFRS 16 Compliance

What is IFRS 16? 

IFRS 16 is here. By requiring virtually all leases to be included on the balance sheet, the new standard aims to bring an enhanced level of accuracy, transparency and accountability to financial reporting.

For your financial team, the biggest change is the removal of the distinction between finance leases and operating leases. From premises through to big-ticket office equipment, IFRS 16 demands detailed consideration of lease data relating to a potentially huge range of assets – many of which were previously dealt with off-sheet.

Under the new regime, active lease management is essential. Failures in data collection, calculation and disclosure can all mean sleepwalking towards non-compliance. This can lead to loss of investor and partner confidence, severed credit lines and (in the case of listed companies), regulatory intervention: risks that few businesses can afford to encounter.


The Lease Management Support You Need… and the Peace of Mind You Deserve

This is where MHR Analytics can help. Equipping your team with CCH Tagetik Lease Accounting software, we can deliver a single, easy-to-use hub for IFRS reporting – including data repository, calculation modelling, reporting and disclosures.

Manage your obligations – while retaining ownership of the accounting process. For IFRS 16 compliance, MHR Analytics delivers peace of mind.


Next-gen lease accounting: Why it’s time to move beyond Excel

IFRS 16 demands a whole new approach to lease contract inventories, processing, updating and recording.

Accurate assessment of assets and liabilities demands detailed lease-by-lease consideration of multiple data points, including contract parameters and incremental borrowing rates: matters that are hard going even for the most skilled accountants.

The days of calculating lease costs via straight lining are gone. You cannot ‘get by’ with Excel. For your finance team to stay on top of their obligations - without recourse to expensive outsourcing - the following capabilities are a must:

Central control

It’s not unusual to have dozens - perhaps hundreds - of reportable leases in play across multiple branches. You require the ability to store, manage and update this information with ease. This includes the ability to consolidate data from various sources.

Workflow management

Procurement managers from across the organisation need to be aware of the reporting ramifications of all leasing/buying decisions. The upshot is that financial reporting is no longer the sole preserve of the finance department. More than ever, you need a system for ensuring you that you get the information you require from the people required to supply it - at the time you need it.  

Hassle-free processing

The less you have to rely on manual data entry, the better. It eliminates the risk of error (especially when it comes to figures) - and frees up your team’s resources to be put to more profitable use.

Automated, complex calculations

For asset and depreciation calculations, interest and more, efficient reporting demands the ability to run precisely the calculation you need in an instant.

Modeling capabilities

You demand the ability to ask ‘what if?’  and get an answer you can trust; something that’s crucial for complex leases and proposed transactions.

The Answer: CCH Tagetik IFRS 16 - Your Compliance Engine

Formulated for IFRS 16, CCH Tagetik Lease Accounting is designed to ensure compliance, while providing an effective framework for managing a growing volume of lease accounting data.

Here are its capabilities:


  • CCH Tagetik provides a central lease data repository to meet all your IFRS 16 calculation, reporting and disclosure requirements.
  • The solution integrates with Qlik Sense and Microsoft BI to enable detailed analysis of lease data.


  • Access a library of lease data models out of the box. Flexible modelling allows you to maintain and extend this library with ease.
  • Process and calculate large volumes of data quickly and enable automatic recalculation with associated balance sheet adjustments.
  • Configure calculation logic and rules via the user-friendly interface.
  • Graphically view assets, liabilities, expenses, depreciation and interest expense to show their impact on balance sheet and P&L using different scenarios.


  • With a single version of the truth and the ability to drill down to any aspect of any lease, you can ensure your reports are fully compliant with IFRS 16 requirements.
  • Create MS Word financial statements, PowerPoint presentations and submissions to regulators through the additional Collaborative Office solution.


  • View your status throughout the entire submission, adjustment and consolidation process via the dashboard.
  • Unify the entire cycle and keep contributors on track using CCH Tagetik’s preconfigured workflow and communications tools.


  • Integrate with your existing systems, including CCH Tagetik CPM and non-CCH applications, on-premise or in the cloud.
  • Import/export data to/from other systems with ease.

The MHR Analytics Difference: Adding value to your software – and your figures

At MHR Analytics, we never “sell software”. With proven expertise across multiple sectors – including retail, logistics, manufacturing and banking, we are committed to ensuring you stay up-to-speed with changing regulation, while maximising operational efficiency.

For your finance team, this includes the ability to connect all your data, to ‘do more with less’ on the reporting side – and extract real insight from your figures.

Here’s the MHR Analytics difference:

Full support. Giving your people the training and confidence they need to get the most out of the CCH platform.

Data health check. Addressing integrity and warehousing issues – ensuring you can always trust the numbers.

Integration and implementation. Minimising disruption and ensuring seamless integration with existing architecture.

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Discover how CCH Tagetik can help you stay on top of compliance and streamline your lease accounting processes. No obligation – just expert advice you can trust. 



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