Within a single lease portfolio
WAN NADZIR & CO.CHARTERED ACCOUNTANTS · AF1234Financial Reporting & Accounting Standards
Managing MFRS 16 Across a Nationwide Lease Portfolio
An organisation with offices across Malaysia needed a practical way to account for approximately 200 lease contracts under MFRS 16.
Assignment snapshot
With contract information held across locations
From contract data to financial-statement disclosures
The assignment
Turning numerous contracts into a manageable reporting process.
Preparing and maintaining a separate calculation for every contract would have been time-consuming and difficult to manage.
The organisation required a structured process that could bring the relevant contract information, calculations and reporting outputs together. The process also had to distinguish leases requiring recognition from short-term and low-value arrangements that may qualify for an exemption.
The challenge
Many contracts.
One consistent treatment.
- 01
Collect the relevant terms from lease contracts held across offices nationwide.
- 02
Assess whether each arrangement contains a lease and whether an exemption applies.
- 03
Calculate lease liabilities and right-of-use assets without preparing a separate manual schedule for every contract.
- 04
Maintain consistent information for journal entries, financial-statement figures and disclosures.
Our approach
A lease register designed around the complete reporting flow.
We developed a structured lease register and calculation framework around the organisation's portfolio of contracts.
The register captures key contract data and links it to the relevant assessments, measurements and reporting outputs. This allows the information entered for each contract to flow through the process without rebuilding the calculation at every stage.
Contract information
Key details including the asset, lease term, payment terms, frequency, amount and applicable interest rate.
→Assessment
Lease identification, classification and consideration of short-term and low-value exemptions.
→Measurement
Connected calculations for lease liabilities, right-of-use assets, interest and depreciation.
→Financial reporting
Amortisation schedules, journal entries, maturity analysis and financial-statement disclosures.
What we developed
Assessment, calculation and reporting within one connected framework.
- Lease-identification heat map
- Central lease register
- Short-term and low-value lease assessment
- Lease liability calculations
- Right-of-use asset calculations
- Amortisation and depreciation schedules
- Current and non-current classification
- Maturity analysis
- Journal entries
- Financial-statement disclosures
The outcome
A more practical way to maintain the lease portfolio.
Once the contract information is entered and maintained in the register, the related calculations and reporting outputs are generated through a connected process.
This removed the need to prepare and update individual amortisation schedules manually for approximately 200 contracts. It also provided a structured basis for reviewing lease information and preparing the relevant figures for the financial statements.
Start a conversation