Features and reports relating to the lease accounting standard IFRS 16 will only appear in organisations that have their Accounting and Finance Settings turned on. In this article, we'll guide you through the set up process, and each of the selections you'll need to make.

How to access the Accounting & Finance Settings 

You can access the Organisation Accounting and Finance Settings by navigating to the Settings page, and selecting the Accounting & Finance section on the left panel.

General Settings

Under General Settings you'll record information about the start date of your Organisation's financial year and currency used for reporting.

Record the Start Date of your financial year using the text field or the calendar tool:

Select the Functional Currency - this is the default currency you'll be reporting in for this organisation:

Payment Effective Date

The Payment Effective Date feature is exclusively for users who has completed on-boarding of their portfolio prior to the 1 July 2020 Effective Date software upgrade. If this is you, and you'd like guidance on how this feature works, please reach out to our Support Team. 

Lock Date

If you'd like to set a Lock Date, enter the end date of the locked period for this organisation. You can also see who last set the Lock Date here. We'd recommend checking out our article for more information on the Lock Date in Nomos One.

Accounting Standard Settings

To see the accounting standards features and reporting in your organisation you need to Enable lease accounting standards module for your organisation. You can do this by toggling the bar to read Yes:

Select IFRS 16 under the Accounting Standard:

Select New Engine under the Engine Type:

The Legacy Engine is only available for comparison purposes for users who completed on-boarding their portfolio before the 1 July 2020 New Engine release. All users who joined after this release should remain using the New Engine to power their calculations. All future upgrades and developments will only be implemented on the New Engine.

Transition Settings

Under Transition Settings you'll record your organisation's transition year and default transition method to apply to all Agreements you create.

Record your organisation's Transition Year in the text field:

Select which Transition Method you want to be the default for your organisation:

• Full Retrospective
• Modified Retrospective

If you've adopted a Modified Retrospective transition, you can adopt either the Simplified (Option B) or Modified Retrospective (Option A) approach. We have given these options names in Nomos One to make it easier to distinguish between them.

Current and Non-Current Liability Calculation Method

When it comes to your disclosure requirements, there are two different methodologies that are available to companies when reporting on the Current and Non-Current Lease Liability:

• Lease Liability Movement, or 
• Net Present Value 

Check out this article for more information on these options. 

Asset Classes

You can set up Asset Classes in your organisation which allows you to filter and see your Disclosure report broken down by Asset e.g. Property, Vehicles, Printers.

To create an Asset Class in your organisation, from the Asset Class Settings section:

• Click Add new
• In the Description field, record the name of the Asset Class
• Click Add to save

Once you've created an Asset Class, you'll then be able to assign this to an Agreement for reporting purposes.

What's Next?

Once you've turned on your Accounting and Finance Settings, you'll see the Lease Accounting Functionalist and Reporting appear in your organisation.

Nomos One does not provide or purport to provide any accounting, financial, tax, legal or any professional advice, nor does Nomos One purport to offer a financial product or service. Nomos One is not responsible or liable for any claim, loss, damage, costs or expenses resulting from your use of or reliance on these resource materials. It is your responsibility to obtain accounting, financial, legal and taxation advice to ensure your use of the Nomos One system meets your individual requirements.