A new international accounting standard for leased assets (IFRS16) has requirements to capitalise all leases regardless of whether they are financial or operating leases.
Microsoft have advised via the IFRS support document (https://mbs.microsoft.com/Files/public/CS/AX/MicrosoftDynamics365forOperationsSupportforIFRS.pdf) that any calculation of the asset values and the repayment split should be done outside of Dynamics 365. Many clients are asking for this functionality to be included within Dynamics 365, specifically;
- Automatic calculation of the right of use value based on the NPV of lease payments
- Periodic calculation of interest and liability reduction calculation
- Periodic calculation of current and non-current liability values.
Are there any plans for this from Microsoft?
Regards
Phil
Comments
Dear Sara Schilke,
When can we expect this on the Roadmap? We do have several customers asking for a full compliance with D365FO.
Br Janne
Category: Fixed assets
Phil,
We understand how significant the impact of the new lease accounting standards will have on companies financial statements.
For this, Crowe Horwath designed and built an application completely embedded within Dynamics 365 to help companies transition to the new standard, IFRS16 and ASC842. Our application is able to perform all the features you've outlined above and more.
Please find the link below for the application Crowe Horwath released in the Microsoft AppSource -
@Sara, thank you for mentioning there are 3rd party solutions available. It is great to see the greater Microsoft community working together to help businesses achieve more.
Thanks,
Luis Lopez
Category: Fixed assets
Administrator on 2/16/2021 9:13:47 PM
Glad to share with you the ongoing incorporation effort to include Asset leasing module under Microsoft Dynamics 365 Finance to support IFRS 16 and US GAAP ASC 842.
Please review Wave 2 Release note.
Sincerely,
Mohamed Aamer
PM, Microsoft