How to enter existing lease contracts after converting

If you have reported IFRS 16 in another tool and are planning to convert to CC5, there is a functionality to ensure your closing balances matches the opening balance in the system. The following section will explain how to insert the correct opening balance into Complete Control 5.

  1. Go to Contracts - + Contracts.

  2. Enter your contract as usual. We recommend that you enter the proper Start date, even though it was before you converted to Complete Control.

  3. Enter the payments. Read more here.
    Note! Ensure that the payments after the switching date are correct and equal to what you had in your previous calculations.

  4. In the Lease section, tick This contract contains a lease according to IFRS 16.

  5. Select the Lease type, either operational or financial.

  6. Select Recognize pre-assessed lease.

  7. Don't change the Commencement date. It contains the contract's start date, and this is correct.
    Consider! The commencement date will be set equal to the contract start date, which is correct in most cases. It can be changed if there are differences. But for pre-assessed leases, there is no reason to do so.

  8. Enter the Discount rate from your contract.

  9. Click Add assessment.

    1. Under Recognition date, select the month you are converting to CC5 as your IFRS 16 tool.

    2. The system will show what its calculation of the opening lease liability for that period. Insert your opening balance (closing balance for the month before) for both lease liability and right of use asset.
      Tip! Any difference between your lease liability opening balance and what the system has calculated will then be recorded as a transition effect with a debit/credit to lease liability and P&L.

    3. Click OK

The Lease assessment is created. If you manually entered a lease liability opening balance, the difference to the system calculations is listed under Transition to measured lease liability. If this transition effect is substantial, there is most likely a difference in payments, stop date, or discount rate. If all these are equal, there must be a difference in the calculation method.