The International Financial Reporting Standard (IFRS 16) was introduced in 2016 and a lot of companies would require adapting the standard on annual reporting periods beginning on or after 1 January 2019. IFRS 16 specifies how an IFRS reporter will recognise, measure, present and disclose leases. Lease management has become a very important part of any successful entity. The standard provides a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value. Lessors continue to classify leases as operating or finance, with IFRS 16’s approach to lessor accounting substantially unchanged from its predecessor, IAS 17.
Balance allows companies to capture all relevant leases and calculates Monthly liability and asset values while leases are active. Lease Liability value is recognizable when a company has large number of leases with different start and end dates, that its impossible for accountants to do them manually. This tool is mainly directed for use of the LESSEE.