ShareControl IFRS 16 feature
Note disclosures in ShareControl IFRS 16
ShareControl IFRS 16 delivers a ready-made basis for the note disclosures, built on the same data as the calculations and postings. It covers lease liabilities, right-of-use assets, depreciation, interest expense, movements in the period and the maturity analysis, both per company and consolidated. The figures can be exported to Excel or read directly in Power BI. The system is a Microsoft 365 app that runs in the entity’s own environment and is developed and maintained by state-authorised public accountants.
Requirements
What does IFRS 16 require in the note disclosures?
IFRS 16 requires the entity to disclose how leases affect the balance sheet, profit or loss and cash flows, in enough detail for a reader to assess the effect. In practice, this means figures for the liability and the asset, the expenses for the period, movements during the year and an overview of when payments fall due.
Carrying amount of lease liabilities
Right-of-use assets by class of underlying asset
Depreciation for the period by class of underlying asset
Interest expense on lease liabilities
Total cash outflow for leases
Maturity analysis of future payments
Maturity analysis
Breakdown of right-of-use assets
Expense components
Qualitative disclosures
How it works
How the disclosure basis is produced in ShareControl IFRS 16
ShareControl uses the same data for calculations, journal entries, reporting and note disclosures. The disclosure basis is therefore not a separate compilation but an extract of figures that have already been calculated and checked.
1
Register the leases with terms, payment schedule, discount rate and documentation.
2
The calculations are updated for the lease liability, right-of-use asset and accruals.
3
The disclosure basis is generated per company or for the group, including movements and the maturity analysis.
4
The figures are exported to Excel or read in Power BI, and the history is kept for the audit.
What our customers say
Why our customers like ShareControl IFRS 16
You have to dare to go inside and look at the system to understand the logic. Then you get a greater understanding and an exercise you should do to see that it is correct. Then you know that it is right for the auditors and you pass the inspection in a safer and more secure way.
– Elisabeth Croce, Business Controller
Frösunda
ShareControl IFRS 16 is a user-friendly and flexible solution that continuously shows us the source of our data. We have over 100 contracts in the system and find that it offers us excellent visibility. This ensures accurate reporting and ensures we have a single repository for the data. The time spent by the team on IFRS 16 compliance has reduced as a result of the implementation of ShareControl.
Contents
What does the disclosure basis in ShareControl IFRS 16 include?
The disclosure basis in ShareControl IFRS 16 covers the main IFRS 16 areas a lessee reports on, with figures that can be used directly in the note tables.
| Area | What the basis shows in ShareControl IFRS 16 |
|---|---|
| Lease liabilities | Carrying amount per company and period |
| Right-of-use assets | Values by class of underlying asset or category |
| Depreciation | Depreciation of right-of-use assets for the period |
| Interest expense | Interest on lease liabilities recognised in profit or loss |
| Movements in the period | Additions, disposals, changes and reduction for the period |
| Maturity analysis | Future lease payments by maturity band |
| Cash flow | Lease payments in the period |
| Changes in the portfolio | Modifications, reassessments and terminations |
Maturity analysis
The maturity analysis is a separate report
The maturity analysis is not built by hand at year-end. It is a report in ShareControl IFRS 16 that takes future lease payments from the same payment schedules the liability is calculated from. The report runs for the individual company and for the group.
Future lease payments by maturity band
The same payment schedule as the liability
Per company or consolidated
Updated when leases change or are added
Can be exported to Excel or read in Power BI
Export
How are the disclosure figures exported?
The disclosure basis can be exported to Excel for further work during the year-end close, or read directly in Power BI. ShareControl IFRS 16 is a Microsoft 365 app, so Power BI reads the data without a separate integration or intermediate export file.
Export to Excel and Power BI
Posting basis as an accounting journal
Direct ERP integration as an add-on
Group
Disclosure basis per company and for the group
In a group, the problem is rarely the individual company’s figures. It is that the companies use different spreadsheets, different assumptions and different versions. ShareControl gives every company in the group the same calculation basis, and the disclosure basis can be run both locally and consolidated from the same source.
Basis per legal entity
Consolidated basis across companies
Translation of leases in foreign currency
Exchange rates from Norges Bank, Sveriges Riksbank, or the group’s own rates
Reporting process
Why do note disclosures become complicated?
Note disclosures become complicated because the figures come from several sources: the ERP system, spreadsheets and a separate lease register. Each source must be reconciled with the others before the note can be finalised, and the reconciliation is often done late in the year-end close.
| Challenge | Example | Consequence |
|---|---|---|
| Several data sources | ERP, Excel and a separate lease register | The note figures must be compiled manually, and differences are found late |
| Changes to leases | Modifications, reassessments, terminations and new leases | The note must be updated with the correct effect of each change |
| Several companies | A group with local entities and their own spreadsheets | The group note requires all companies to use the same calculation basis |
| Several currencies | Leases in foreign currency | The exchange-rate basis must be documented and used consistently in the note |
| Audit | The auditor asks for the basis behind a figure in the note | The figure must be traceable back to the lease and calculation |
See the disclosure basis in your own Microsoft 365
Book a demo and we will show you how the disclosure basis, the maturity analysis and the audit trail connect to the calculations and postings.
