The key project goals were:
- To acquire solution for accounting lease agreements as requested in IFRS 16.
- To acquire ERP, with IFRS 16 solution built in, which could be used for accounting of internal banking operations (fixed assets, expenses, revenue, reporting, etc.) later.
- To have ready to use solution for starting day - 1st January 2019.
- To have solution, which could to provide reports about historical lease contracts in full retrospective mode, starting from 2016.
Columbus and Šiaulių Bankas subsidiary Šiaulių Banko Lizingas are successfully cooperating in IT projects for more than 5 years, and thus Columbus has gained reliable partner’s name.
Columbus has a strong background of lease contracts management solutions (with certificated Columbus Leasing product) on lessor side and could re-use know-how for building lease management solution for lessees.
Columbus solution – IFRS 16 module, which can be incorporated into ERP of lessee companies to meet IFRS 16 requirements.
The main idea of Columbus IFRS 16 solution is to calculate present value of future lease payments and calculate lease schedules, where contractual monthly payments are split into two parts – present value and interests’ amount. It also includes significant number of features and enhancements that are required by lessees to support lease agreement accounting according to IFRS, starting with its signing, schedule calculation and up to its natural ending or termination.
Columbus IFRS 16 solution is based on Microsoft Dynamics NAV (now Microsoft D365 Business Central) and tightly integrated with general ledger, fixed assets and other Microsoft Dynamics NAV modules.
The core functionality includes:
- Present value calculation using period payment, lease period, interest rate and various other additional parameters.
- Lease schedule calculation (monthly, quarterly, half year, annual).
- RoU Asset Management.
- Contract amendment management.
- Contract ending activities management.
- Lease agreement accounting operations.
- Contracts status flow.
Results of the project
- Standard Columbus IFRS 16 solution fully covers Šiaulių Bankas needs – solution was implemented without modifications/customizations.
- Dynamics NAV application with IFRS 16 Solution will be used for accounting internal daily banking operations.
- Implemented solution is intuitive, user friendly and allows to manage lease contracts with minimum efforts, at the same time preventing possible mistakes.
- Advanced architecture will allow to expand solution with additional features in future.
Vita Urbonienė (Head of Accounting and Tax Division, Chief accountant) and Toma Baniulė (Head of Internal Accounting Department) feedback
The implementation of new standart was fluent.
The Bank provided calculations and disclosures of new standart to the management of Bank and audit company on time.
Feedback about the project team and its members: the team of Columbus is very qualified, helpful and understanding our needs. We are thankful for cooperation.
We would recommend Columbus as a business partner because of our experience in the project of IFRS 16.