The Lease Module (module of the CBS B2 software package) is designed to account operations connected with objects leasing — as own objects so taken into the temporary use ones.
Module’s functionality consists of a number of submodules. Together, they provide integrated management of the lease objects and accounting tasks solving.
Main functions of the Lease Module
- accounting of the expense and profitable lease objects; automation of operations with them
- synchronization with the Fixed Assets Module
- opportunity to lease one object to some lessees
- opportunity to devide the rental fee into a permanent rent (office rent) and a variable one (chargeable services)
- flexible management of rates and tariffs for services, history storage of changes in rates and tariffs
- automatic calculation of the lease payment including exchange rate, inflation index, history storage of changes in the exchange rate, inflation index
- opportunity to account lease obligations using the effective interest rate with an amortization of the leasepayments for the whole expiration period of the instrument.
Main characteristics and business advantages of the Lease Module
- the module operates in accordance with the IFRS 16 Leases provisions and government regulator requirements (NBU Resolution 20.12.2005 № 480)
- the module performs in two directions: the bank that uses this module can be a lessee and a lessor, including simultaneously (for various fixed assets), operating the expense and profitable lease in a single software solution and under the one methodological approach.
- the module is integrated with the CBS B2 module — “Fixed Assets” in the implementation of fixed assets primary recognition (installation) and revaluation on the 4th grade of the balance sheet within the revision of lease agreements
- the module can be integrated with similar functional modules for maintaining fixed assets of the third-party CBS
- the module interacts with the CBS B2 mechanisms for creating reserves and calculating credit risk according to the requirements of the NBU Board Resolution № 351. It allows to reflect the impact of active leasing operations on the bank's overall exposure to credit risk and regulatory capital on the regular basis and to generate mandatory reporting correctly