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IFRS 16 Lease Accounting: Implementation Guide for Indonesia

Step-by-step IFRS 16 / PSAK 73 implementation

Lease accounting (PSAK 116) / 1 min read

Implementing IFRS 16 (or PSAK 73 in Indonesia) is a significant project that requires careful planning, adequate resources, and the right technology support.

IFRS 16 Implementation Steps

IFRS 16/PSAK 73 implementation includes: lease contract identification, data collection, transition method selection, system configuration, calculations, validation, and go-live.

Implementation Challenges in Indonesia

Indonesian companies face specific challenges: large volumes of lease contracts, multiple currencies, frequent modifications, and integration needs with local ERP systems.

Choosing the Right IFRS 16 Software

Key considerations include: contract volume handling, multi-currency support, journal entry automation, integration capabilities, and local implementation support.

Case Study: Insurance Company Implementation

Questions

How long does IFRS 16 implementation take?

Typical implementation takes 2 months, and up to 6 months if additional features are needed.

Do I need to replace my existing ERP system?

No. Most lease accounting software can be connected to an existing ERP system through APIs or data export and import.

Where Nextera comes in

Lease accounting (PSAK 116)Nextera AccordClassifies each lease, calculates right-of-use assets and lease liabilities, remeasures them when terms change and produces the PSAK 116 disclosures.See Nextera Accord

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