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About the Application

Nakisa Lease Administration is a holistic lease management, accounting, and reporting solution designed to support regulatory compliance with IFRS 16 and ASC 842, as well as GASB 87. As a comprehensive lease accounting solution, Nakisa Lease Administration allows organizations to centralize global leasing data, gain insight into lease liabilities and commitments, and streamline lease accounting operations.

The solution offers functionality that assists customers in their efforts to be compliant with the following IASB, FASB, and GASB requirements:

Lease inception (asset capitalization and lease obligation, including base rent, extensions, initial direct costs, incentives, prepaid, index, termination option, and purchase option)
Lease events:
- Asset casualties
- Reassessments (selection of which terms and conditions are likely to be exercised, extensions, terminations, and early buyout)
- Lease modifications (rent modification, new terms and conditions, rate modification, scope increases and decreases)
- Asset impairment
- Intercompany asset transfer
Multi-GAAP: Financial schedules per accounting standard, and per classification type (finance, operating, short term, low value, service)
Note: Nakisa Lease Administration supports ASC 842 Operating leases with the following limitation in multi-GAAP: The application does not support postings to different asset acquisition GL accounts when two accounting standards in the same lease have finance and operating lease classifications.
- Account assignment in SAP should be set up in order to book asset capitalization to separate GL accounts in order to be reported under different balance sheet positions.
Non-lease components
Support of Parallel ledger accounting in SAP
Support of New Asset Accounting in SAP
Support of parallel connections to SAP
Connected and hybrid modes (with respect to SAP) and standalone mode
Full retrospective transition accounting
Proposed approach for modified retrospective transition accounting

Financial users can collect lease contract information, review and approve financial schedules, onboard leased assets and operate the lease (i.e., track asset status and trigger posting executions).

Furthermore, business roles segregation, classification and approval workflow logic, alerts and notifications, as well as reporting and dashboard capabilities support the business processes executed for common operational events.

The following table lists the accounting features addressed in Nakisa Lease Administration. Refer to Appendix: IFRS 16 Illustrative Examples and Appendix: ASC 842 Illustrative Examples for the list of supported examples from the IFRS and US GAAP standards.

Accounting Feature	Supported Nakisa Lease Administration Feature
Inception recognition	PVMLP (Present Value Minimum Lease Payment) computation
	Initial Direct Cost
	Lease incentives (in cash or free rent)
	Purchase option
	Renewal term
	Prepayment (lease payments paid before commencement date)
	Index
	Guaranteed residual value
	Contract rate (implicit rate)
	IBR if contract rate is not available
	Non-lease component
	Activation group: Capitalizing assets in different batches within the same contract when they are received
	Bulk assets
	Termination option (likely to exercise or not)
Lease determination questionnaire to identify the type of leases	Fixed lease contracts
	Low value leases
	Short term leases
	Fix & variable leases
	Non-lease contract
	Service contracts
Type of payments	In advance
	In arrears
	Amount frequency: Daily, Monthly, Yearly, One Time
	Payment frequency: Bi-Monthly, Monthly, One Time, Quarterly, Semi-Annually, Yearly
	360 convention
Subsequent measurements	Determination of depreciation term (shorter of useful life or lease term, unless there is a purchase option or transfer of ownership)
	Straight-line depreciation
	ASC842 operating depreciation
	Effective interest method, lease liability amortization
	Non-lease periodic recognition
	Accrual and payments
	Reclassification of lease liability (short-term/long-term)
Lease modification	Increase of scope of ROU asset (such as adding a new lease component for additional new equipment to the lease)
	Decrease of ROU (reduction in lease, such as returning few assets from the original batch causing a revised payment plan)
	New terms and conditions (change contract rate, payment, lease term, etc.)
Lease reassessment	Increase of scope of ROU asset (e.g., exercise extension term option that was not included, i.e., was not reasonably certain to exercise at inception)
	Decrease of ROU (e.g., not exercising the extension term that was included in the initial recognition)
	Change of estimated GRV
Other lease events	Indexation
	Casualty
	Asset impairment
	Intercompany asset transfer

Note: A system administrator configures the application to accommodate the specific needs of your company. The information provided in this guide may be different from the current application if it is customized.

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Accessing the Application