IFRS 16 Lease Management
Amy is the Group CFO of MNO Telecommunications Limited a diversified telecommunications company that operates as a Mobile Network Operator (MNO). MNO manages network infrastructure along with providing telephone and data connectivity to millions of customers.
MNO operates through a chain of retail stores and contact centres in various shopping malls countrywide and on the African continent.
MNO also leases a fleet of vehicles for servicing its customers as well as for attending to technical issues in its network infrastructure. MNO also rents tower space from other network tower operators.
The MNO Group operates various divisions and legal entities that utilise different Enterprise Resource Planning (ERP’s) and accounting source systems.
As a result of its business model, MNO Telecommunications Limited has a large operating lease portfolio consisting of:
Historically, Amy and her team performed cumbersome lease calculations by using spreadsheets. Maintaining accurate leasing calculations has become difficult under the new IFRS 16 regime. Significant errors keep coming up during quality checks thus increasing the time taken to complete the correct reporting on leases.
Amy approaches Lofty Brainchild to provide a solution for her to manage her ever increasing lease portfolio. Upon assessing her needs they recommend the Amana GlobalLeaseCentre IFRS 16 Lease Accounting solution.
