Nextera Accord
Lease accounting (PSAK 116)
Classifies each lease, calculates right-of-use assets and lease liabilities, remeasures them when terms change and produces the PSAK 116 disclosures.
Built for: Finance and accounting teams, controllers and the CFO’s office, and external auditors
What it does
- PSAK 116 / IFRS 16
- Apply the standard to every lease: recognition, measurement and disclosure.
- Classification
- Decide whether each contract contains a lease, and apply the short-term and low-value exemptions where they fit.
- Right-of-use assets
- Recognise each right-of-use asset and depreciate it over the lease term, with the schedule kept up to date.
- Lease liabilities
- Measure each lease liability at present value and unwind the interest over the term.
- Remeasurement
- Remeasure the asset and the liability when a lease is modified, reassessed or its payments change with an index.
- Disclosures
- Produce the maturity analysis, movements and expense the standard asks you to disclose, tied to the schedules behind them.
How it works
Load your leases
Bring in every lease contract with its payments, term and discount rate.
Classify
Classify each lease and apply the short-term and low-value exemptions where they fit.
Calculate each period
Calculate the right-of-use asset, the lease liability, interest and depreciation every month.
Remeasure and disclose
Remeasure when terms change, and produce the disclosures PSAK 116 requires.
- Opening liability
- IDR 1,000,000,000
- + Interest (10% a year)
- IDR 8,333,333
- − Payment
- IDR 25,000,000
- Closing liability
- IDR 983,333,333
The standard behind it
Accord follows PSAK 116, Indonesia’s adoption of IFRS 16. PSAK 116 was numbered PSAK 73 until the 2024 renumbering; the requirements did not change.
Common questions
Is PSAK 116 the same as PSAK 73?
Yes. PSAK 73 on leases was renumbered PSAK 116 when DSAK IAI renumbered its standards in 2024. Both are Indonesia’s adoption of IFRS 16, and the requirements did not change.
Does Accord handle lease modifications?
Yes. A modification, a reassessment or an index-linked change in payments triggers remeasurement of the right-of-use asset and the lease liability, and the revised schedules carry through to the disclosures.
Are short-term and low-value leases handled?
Yes. Accord applies the standard’s exemptions when it classifies each lease, and expenses those leases on a straight-line basis instead of recognising an asset and a liability.
Can the auditor trace the disclosures?
Yes. Every figure in the maturity analysis, the movements and the expense disclosure comes from the lease schedules, so the auditor can trace each one back to the lease it came from.
Further reading
- 2 min readPSAK 116 and PSAK 73: IFRS 16 Lease Accounting in IndonesiaComplete guide to PSAK 73 / PSAK 116 (IFRS 16) in Indonesia. Learn about lease accounting requirements, implementation steps, and software solutions for compliance.
- 1 min readIFRS 16 Lease Accounting: Implementation Guide for IndonesiaIFRS 16 implementation guide for Indonesian companies. Transition steps, common challenges, and lease accounting software solutions.
- 2 min readRight-of-Use Assets & Lease Liabilities: PSAK 73 Journal Entries ExplainedComplete guide to right-of-use asset and lease liability accounting under PSAK 73/IFRS 16. Learn journal entries, calculations, and how software automates lease accounting.
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Ask for a Nextera Accord demo
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