ShareControl IFRS 16 feature
ShareControl IFRS 16 integrations with ERP, consolidation and exchange rates
IFRS 16 calculations are of little value if the figures cannot be used efficiently in accounting, consolidation and reporting. ShareControl IFRS 16 generates an accounting journal with the IFRS 16 postings, which the finance team checks and uploads to its own ERP, consolidation or reporting system. It also retrieves exchange rates from central banks. The solution runs in your own Microsoft 365 and is developed and maintained by state-authorised public accountants.
Background
Why IFRS 16 integrations matter
IFRS 16 requires calculations, but the accounting team also has to get the figures into the day-to-day accounting process, group reporting and the documentation for the audit.
IFRS 16 postings must go into the ERP or accounting system
Lease data must be usable in consolidation
Company data on the counterparty must be correct and standardised
Exchange rates must be handled correctly for foreign-currency leases
Accounts, dimensions and company structure must match
The auditor must be able to trace the figures back to the lease and the calculation
Integrated with Microsoft 365 and other Microsoft products
Integrations with CRM, ERP and other external systems
Customisation and development of integrations as needed
IFRS 16 integrations
Which systems can ShareControl IFRS 16 be used with?
For ERP, consolidation and reporting systems, delivery is file-based: ShareControl IFRS 16 generates a journal file in a format that suits the system, and you upload it yourself. From the central banks, ShareControl retrieves data directly. File format, chart of accounts, dimensions and reporting structure are agreed during set-up.
| System | Type | IFRS 16 use |
|---|---|---|
| SAP ERP / S/4HANA | ERP, journal file | Journal file with IFRS 16 postings in an SAP-ready format, covering the right-of-use asset, lease liability, interest and depreciation, ready to upload. |
| Visma Business / Visma.net | ERP, journal file | Journal file with IFRS 16 postings per company and period, matched to the chart of accounts and dimensions in Visma. |
| Unit4 ERP / Agresso | ERP, journal file | Journal file with IFRS 16 postings and lease data in a format that can be uploaded to Unit4 ERP. |
| Cantor | ERP and accounting, journal file | Journal file with IFRS 16 postings for Cantor, with lease liabilities in several currencies. |
| Oracle HFM / Hyperion | Consolidation, file | Consolidation basis for IFRS 16 data in Hyperion Financial Management, with multiple currencies and reporting across companies. |
| IBM Cognos Controller / Planning Analytics | Consolidation and reporting, file | Basis for financial consolidation of lease data in Cognos, with multiple currencies and IFRS 16 reporting at group level. |
| OCRA | Consolidation, file | Consolidation basis for IFRS 16 lease data in OCRA, with multiple currencies and postings to the consolidated financial statements. |
| Bright Analytics | Reporting and analysis, file | Export of IFRS 16 data to Bright Analytics for consolidation, reporting and an overview of the lease portfolio at group level. |
| Central banks | Exchange rates, bank API | Automatic retrieval of exchange rates and average rates from central banks for translating lease liabilities in foreign currency. |
| Own exchange rate source | Exchange rates, own connection | You can set up your own connection to your own exchange rates and use the group’s rates consistently in calculation and reporting. |
| Other ERP systems | Custom file format | The journal file is adapted to other ERP and accounting systems in cooperation with ShareControl. Contact us to clarify what your system needs. |
What can be transferred
What can the integration basis include?
The integration basis can contain the key accounting and reporting effects of IFRS 16, structured so the finance team can use the figures further.
| Area | Example |
|---|---|
| Lease liability | Opening posting and periodic reduction |
| Right-of-use asset | Initial recognition and depreciation |
| Interest expense | Periodic interest from the amortisation schedule |
| Payments | Reduction of the lease liability |
| Modifications | Updated postings when the lease changes |
| Exchange rates | Rate basis and average rates |
| Dimensions | Company, cost centre, project or reporting unit |
What our customers say
Why our customers like ShareControl IFRS 16
Share Control has assisted us in importing agreements into the system solution, giving us full control over all lease agreements and our obligations. By ensuring efficient and structured management of lease agreements, we can easily administer and comply with the IFRS 16 regulations.
During the implementation of IFRS 16, we have received extensive and valuable assistance from Share Control. Through close cooperation and thorough support, we have ensured that all leases have been correctly and efficiently imported into the ShareControl IFRS 16 system.
– Henrik Dürr, Financial Controller
Inin Group
In collaboration with Share Control, Fexco has received valuable assistance in mapping and importing most of the leases into the system. This has laid the foundation for compliance with IFRS 16 and ensures accurate reporting for the company in the future.
Throughout the implementation, we have received excellent support in system setup, which involved the automatic upload of a large number of contracts and detailed questions related to IFRS 16.
How it works
How the IFRS 16 figures get into the accounts
ShareControl is designed to work with your existing ERP, consolidation and reporting systems. The aim is not to replace them, but to give the finance team a controlled IFRS 16 basis that can be posted and reported further.
1
ShareControl sets up the solution with you: which items are to be posted, and to which accounts.
2
ShareControl IFRS 16 calculates the IFRS 16 values and generates the journal file for the period.
3
The finance team checks the postings and the reporting basis and confirms that everything is correct.
4
You upload the journal file to your own ERP, consolidation or reporting system.
Set-up
Connect the IFRS 16 basis to your accounting structure
For IFRS 16 postings and reporting data to be usable further, they must follow your accounting structure. ShareControl can be organised around companies, accounts, dimensions, currencies and reporting needs.
Company and legal entity
Accounts for the lease liability and right-of-use asset
Accounts for interest and depreciation
Cost centres, projects and dimensions
Contract currency, functional currency and the group’s presentation currency
Journal entries
Generate IFRS 16 postings as an accounting journal
Once the lease has been registered and calculated, ShareControl generates the accounting basis as an accounting journal. The postings build on the same data used in reporting, consolidation and documentation, and the accounts follow the set-up agreed with you.
Initial recognition
Monthly interest entries
Depreciation
Payments and reduction of the lease liability
Modifications and terminations
Export
Upload the journal file to ERP, consolidation and reporting
ShareControl is the controlled source of IFRS 16 data, and you upload the file yourself to your finance, consolidation or reporting system. The file format is adapted to your system set-up and accounting process.
Journal file in a format adapted to your ERP
Basis for the consolidation system
Export to Excel when needed
Journal file per company and period
Validation before transfer
Exchange rates
Automatic retrieval of exchange rates
For leases in foreign currency, exchange rates are an important part of IFRS 16 reporting. ShareControl can retrieve exchange rates and average rates from central banks and use them in calculation and reporting. Companies that use their own rates in the reporting process can set up their own connection to their own rate source.
Integration with central banks
Own connection to your own rate sources
Exchange rates and average rates
Translation of lease liabilities in foreign currency
Get the IFRS 16 postings ready for accounting and consolidation
See how ShareControl IFRS 16 makes it easier to generate, check and post IFRS 16 data in your existing systems.
