The Argo ERP system complies with

the IFRS 16 financial reporting standard (Leases)
 

The IFRS 16 financial reporting standard, which was implemented globally in 2019, requires the conversion of leases into Finance Lease Liabilities. Unlike TAS 17, IFRS 16 introduces new principles for the accounting of “lessees.” Lessees are no longer required to classify leases as either “finance leases” or “operating leases.” Instead, they must recognize both the assets and liabilities arising from all lease agreements (except for short-term leases of no more than 12 months or leases of low-value assets worth less than 5,000 USD). When recording lease assets and liabilities, lessees must also recognize "depreciation" and "interest," whereas previously, lessees only reported rental expenses in financial statements.

Method of lease accounting enhances transparency

Steps for IFRS 16 calculation in the ArgoERP system:

Since the global enforcement of IFRS 16, the most significant impact on companies is the requirement to recognize the “right-of-use asset” as an asset and to recognize the liability arising from future lease commitments in the financial statements. This change affects key financial ratios and impacts not only the numerical data in financial statements but also the management practices of companies. The ArgoERP system, which adheres to TFRS 16, the Thai financial reporting standard for leases, helps businesses to smoothly produce financial reports and enhances organizational management efficiency.

For a demo, please contact us at Contact Us or for further inquiries:
Phone: 0633253640 or 02-6863000 ext. 3042
Email: support@aresth.co.th