Lease Option Cancellation Accounting Does Not Meet IFRS16 Compliance (Doc ID 2749816.1)

Last updated on OCTOBER 13, 2022

Applies to:

Goal

ENHANCEMENT REQUEST DESCRIPTION

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Lease Option Cancellation Accounting Does Not Meet IFRS16 Compliance

Current functionality - Actual behavior:

When a lease option is cancelled, the system reverses booking entries and all expense entries to date in total

Internal auditors have advised that this accounting treatment is not acceptable

Audit trail of the options are lost when they are cancelled
• Associated streams get deleted.
• Transactions till date reversed.
• Incorrect changes to already reported balances in Lease Detail Report

BUSINESS NEED

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Expected behavior:
System should as advised by internal auditors
Retain the audit trail for lease option as at cancellation date
• Retain the option information
• Maintain distinct status for action
• Display the date of cancellation
• Retain streams generated till ACD of cancellation
• No changes to reported balances on LDR

Solution

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