Value Proposition: The application of Standard 16 to lease contracts fails not due to “lack of a program,” but due to the absence of an operating file that links the contract to accounting: lease term, payments, discount rate (IBR), Right of Use asset (ROU), and lease liability, followed by monthly entries (Interest + Depreciation + Payments) with clear Reconciliations to GL/TB. This template transforms the lease contract from PDF to a Closing Pack that can be traced from the payment item to the JE Log and then to the Adjusted TB.

In 20 Seconds: What Will You Get?

• Lease Register: A register of lease contracts (Term/Payments/Options/Index/Counterparty) with a reference number for each contract.
• Amortization Schedule: Lease liability schedule (Opening → Interest → Payment → Closing) for each contract.
• ROU Asset Schedule: Right of Use asset schedule (Cost → Depreciation → NBV) linked to the GL.
• JE Templates + JE Log: Ready entries (Initial recognition / Month-End / Remeasurement / Termination).
• Modifications & Remeasurement Log: A log of contract modifications and remeasurements with reasons and links to evidence.
• Reconciliations: Matching Lease Liability and ROU to TB/GL before approving Adjusted TB.
• IFRS 16 Closing Pack: A deliverable file (Index + Schedules + Notes support + Sign-off) for internal/external review.

CTA related to outputs: Receive Lease Register + Amortization + ROU/LL Rollforward + JE Log + Reconciliations + Closing Pack.

Suitable For

• GL / Financial Reporting: Need to convert lease contracts into monthly entries and audit-ready reconciliations.
• Chief Accountant / Controller: Want Month-End/Year-End with controlled closure (Schedules + JE + Recs).
• Internal/External Audit: Require Traceability: Contract → Assumptions → Schedule → JE → GL/TB.

Not Suitable For

• Those looking for unrelated accounting items such as Standard Spoons/Standard Spoons or results from Standard Test or information about Standard Company.
• Those wanting only a “theoretical explanation” of the standard without operations and outputs (the product is practical: Schedules/JE/Recs).

Without the Template / With the Template (Brief Comparison)

Before Use: 5 Symptoms That Lease Contracts Will Cause Closing Differences

• Contracts stored as PDF without a Lease Register; no single “contract list” with terms, payments, and options.
• Payments recorded directly as expense/payment with no clear separation between Interest / Principal according to the Liability schedule.
• Discount rate (IBR) undocumented, or changes without an Assumptions memo, resulting in the same contract showing different numbers across periods.
• Contract modification/extension/early termination occurs operationally without accounting reflection (no Modifications log).
• At Year-End: Lease Liability and ROU balances in GL do not match any schedule, increasing evidence requests (Traceability) during the audit.

How is Standard 16 Practically Applied to Lease Contracts?

Step 1: Preparation and Data Collection “As Stated in the Contract”

• Catalog contracts within the Lease Register: Contract number, counterparty, start date, lease term, renewal/termination options, payments (fixed/variable), any free periods, and any guarantees.
• Establish the company policy for Standard No. 16 variables: Short-term / Low-value exemptions, separation of non-lease components if applicable, and methodology for determining IBR.
• Prepare GL mapping: Accounts for ROU Asset, Accumulated Depreciation (if a separation is used), Lease Liability (Current/Non-current), Interest expense, Depreciation expense, and payable accounts.

Step 2: Build Schedules + Review Methodology

• Input the payment schedule for each contract and run the Amortization schedule (Opening/Interest/Payment/Closing).
• Calculate ROU Asset and generate Depreciation schedule according to the policy of life/term, documenting Assumptions.
• Record any contract requiring special treatment: modification/extension/termination/re-measurement (Index/Rate change) within the Modifications log before closing.

Step 3: Month-End / Year-End (JE + Reconciliations + Closing Pack)

• Issue month-end entries from JE templates: Interest + Depreciation + Payment allocation, then post them and record the entry number in the JE Log.
• Perform Reconciliations: (Lease Liability schedule ↔ GL) and (ROU schedule ↔ GL) before approving Adjusted TB.
• Compile the Closing Pack: Index + Registers/Schedules + Assumptions memo + Modifications + Disclosures support + Sign-off.

Template Components (Clear Inventory)

1. Lease Contract Register
   • Practical Purpose: Transform contracts from scattered files into a single register that specifies Term/Payments/Options/Counterparty.
   • When Used: At establishment + Monthly updates upon new contract/modification.
   • Resulting Evidence: Register Versioned + Reference ID for each contract + Archiving links.
2. IBR / Discount Rate Sheet
   • Practical Purpose: Establish the IBR/discount rate used for each contract or category, with an Assumptions memo.
   • When Used: At initial recognition + upon re-measurement if methodology/inputs change.
   • Resulting Evidence: Assumptions sheet + Source/Internal memo + Approval date.
3. Payment Schedule
   • Practical Purpose: Specify fixed/variable payments/free periods as a basis for schedules and entries.
   • When Used: When preparing the contract + update upon modification of payment terms.
   • Resulting Evidence: Payment schedule linked to the contract + Reference to the contract/item page.
4. Lease Liability Amortization Schedule
   • Practical Purpose: Detail lease liability (Principal/Interest) monthly to produce Month-End entries.
   • When Used: Monthly + Annually for aggregation within Year-End.
   • Resulting Evidence: Liability schedule for each contract + Aggregate totals + Snapshot for the month.
5. ROU Asset & Depreciation Schedule
   • Practical Purpose: Calculate the Right of Use asset and its depreciation/amortization according to contract duration/policy.
   • When Used: Monthly for depreciation + upon modification/early termination for re-measurement/closure.
   • Resulting Evidence: ROU rollforward + Depreciation schedule + NBV.
6. Modifications & Remeasurement Log
   • Practical Purpose: Document any extension/termination/change in payments/Index and determine its impact on Liability/ROU.
   • When Used: Immediately upon modification + Monthly review of open cases.
   • Resulting Evidence: Log with status (Open/Posted) + Modification attachments + Entry reference.
7. Exemptions Tracker (Short-term / Low-value)
   • Practical Purpose: Document exempt contracts if the company applies IFRS 16 exemptions and determine the basis for exemption.
   • When Used: When entering a new contract + Annual review.
   • Resulting Evidence: Exempt list + Reason + Policy approval.
8. JE Templates + JE Log
   • Practical Purpose: Generate postable entries: Initial recognition / Interest / Depreciation / Payment / Termination / Remeasurement.
   • When Used: Monthly at Month-End + upon modification/termination events.
   • Resulting Evidence: JE templates + Entry number after posting + Link to the Schedule within JE Log.
9. Reconciliations to GL/TB
   • Practical Purpose: Prove that the totals of schedules (ROU/Liability) match GL/TB balances or explain differences.
   • When Used: Monthly before approving Adjusted TB + Annually within Year-End pack.
   • Resulting Evidence: Reconciliation schedules + Classified differences + Closing plan.
10. Disclosures Support
    • Practical Purpose: Compile supporting numbers for notes (Maturity/Expense split/ROU movement) as required by your policies.
    • When Used: Year-End (and sometimes Quarter-End) before issuing the statements.
    • Resulting Evidence: Note support pack linked to schedules and entry references.
11. IFRS 16 Closing Pack Index + Sign-off
    • Practical Purpose: Indexing the “month/year version” including contracts, schedules, entries, and reconciliations.
    • When Used: Month-End and Year-End.
    • Resulting Evidence: Pack Index + Prepared/Reviewed/Approved + Version.

What Should Be Included in the Delivery?

• 01-ReadMe & Runbook: Steps to operate Standard 16 from contract entry to entries and reconciliations.
• 02-Lease Register: Contract register + Reference IDs + Links to contract files/appendices.
• 03-Assumptions Memo: Policy memo for the standard: IBR/Exemptions/Non-lease components + Approval date.
• 04-Payment Schedules: Payment schedules for each contract + Reference to payment item in the contract.
• 05-Amortization Schedules: Lease Liability schedules for each contract + Aggregate totals for the month/year.
• 06-ROU & Depreciation: ROU/Depreciation schedules + Rollforward + NBV.
• 07-Modifications Log: Log of modifications/re-measurements + Attachments + Posting cases.
• 08-Exemptions List: List of exempt contracts (Short-term/Low-value) + Reason for exemption.
• 09-JE Templates & JE Log: Month-end entries + Posting numbers + Linking entries to schedules.
• 10-Reconciliations: Matching ROU/Liability to GL/TB + Explaining differences + Corrective actions.
• 11-Disclosures Support: Disclosure support file (Year-End) linked to numbers and schedules.
• 12-Pack Index & Sign-off: Delivery index + Prepared/Reviewed/Approved + Month/Year version.

After Implementation (Two Points Only)

• Operational Outcome for the Team: Monthly lease entries become the output of a single schedule (Interest/Depreciation/Payment allocation) instead of scattered adjustments, and any contract modification appears as a case within the Modifications log before posting.
• Audit/Control Outcome: Traceability: Contract → Assumptions → Payment schedule → Amortization/ROU → JE → GL/TB, within the Closing Pack with Versions and Sign-off.

FAQ — Questions Before Purchase

Does this apply IFRS 16 on the Lessee or Lessor side?

The primary focus is on the Lessee side: ROU Asset + Lease Liability + Month-End entries and reconciliations. Lessor accounting has different requirements and is not within the scope of this template.

Does it cover “Finance Lease Standard” and is it the same as Standard 16?

The product is aimed at applying Standard 16 (IFRS 16) as it is practically used on lease contracts by the lessee. The term Finance Lease Standard appears frequently in searches; within the template, you will focus on ROU/Liability and schedules and entries regardless of search terminologies.

Does it support multiple contracts and branches/cost centers?

Yes. The register is built on Contract ID and can add Branch/Cost Center for aggregations, then distribute entries by center if your policy requires it.

Does it handle variable payments or contracts linked to an index?

It supports documenting the type of payments within the Payment schedule and allows recording re-measurement events within the Modifications log when necessary according to company policy.

Does it include separation of non-lease components?

It provides a place to document the separation/no separation policy within the Assumptions memo, and how to handle these components within the schedules (as determined and documented by the company).

What is the minimum data required to get started?

Contract/appendix copy, start date, lease term, payment schedule, renewal/termination options with impact, and defining IBR methodology or approved discount rate, along with TB/GL for the target accounts for matching.

Does it automatically produce financial statement disclosures?

It provides a Disclosures Support file that prepares supporting numbers and schedules (ROU movement / Liability maturity / Expense split) to be included in the notes according to your disclosure template.

Is this product related to “Standard Company” or “Standard Test” or “Standard Spoons”?

No. These are general search terms unrelated to accounting content. The product is exclusively designed for applying Standard No. 16 to lease contracts and producing closing evidence.

Can it be used for Month-End only or Year-End as well?

It serves both: Month-End for issuing entries and reconciliations, and Year-End for producing rollforwards and disclosure support file within the Closing Pack.

Ready to Close Lease Contracts with an Audit-Ready IFRS 16 File Instead of GL Differences?

Outputs: Lease Register + Amortization + ROU/LL Rollforward + JE Templates/JE Log + Reconciliations + Closing Pack Index.