At the end of each financial year, organisations face the complexities of IFRS 16 compliance. Some are equipped to handle those complexities better than others. In our latest webinar, How to Streamline Your IFRS 16 Process at Year End, Quadrent welcomed Head of Finance at Connexa Limited, Noraini Kamaruddin, to discuss practical insights, common pitfalls, and proven strategies for simplifying lease accounting in a post-IFRS 16 world.
From legacy lease challenges to the role of technology and AI, the discussion highlighted one clear theme: IFRS 16 is not simply a compliance exercise. It can become a strategic opportunity for your business.
Noraini shared Connexa's experiences in building IFRS 16 processes from the ground up in a fast-growing infrastructure business. Her key takeaway? Invest early in clean data and structured processes.
"People underestimate the importance of quality data and end-to-end process," Noraini explained. "Getting it right at inception saves time and reduces risk down the line."
Many organisations treat IFRS 16 as a one-off compliance task that they throw their whole finance team at once a year. Without clear policies and assumptions, even good data can lead to poor outcomes.
One of the most common challenges in IFRS 16 compliance is the disconnect between departments. Property teams hold lease data, while finance handles accounting. Without structured communication and shared systems, errors and delays are inevitable.
Noraini's advice? Get buy-in from all stakeholders early. "Bridging the gap between property and finance has made us more proactive. We’re no longer reacting to issues - we’re preventing them."
While spreadsheets may have sufficed during initial IFRS 16 transitions, they’re no longer fit for purpose. Manual processes are prone to errors, lack transparency, and create audit headaches.
Systems are about more than just automation. They provide audit trails, control checks, and transparency. But not all systems are created equal, and ease-of-use and flexibility are critical.
Noraini commented that implementing the lease management platform LOIS, a fit-for-purpose system, took just six weeks. "Now, our monthly process takes hours instead of days. My team can focus on analysis, not data wrangling."
Take back control of your IFRS 16 compliance.
Many organisations still opt for annual IFRS 16 updates, but the panel in this webinar agreed that monthly processing offers significant advantages.
Noraini's team at Connexa manages thousands of leases. "Annual updates just aren’t feasible. Monthly processing keeps us accurate and audit-ready."
By implementing the right platforms and processes, you can catch errors early. Too often, businesses unknowingly extend leases or overpay due to outdated data. Updating your lease data in a streamlined process every month can help to avoid these costly mistakes.
With audit season in full swing, here's how you can make getting audit-ready smoother:
Noraini noted that Connexa's auditors were impressed by the system-generated amortisation schedules in LOIS, which mirrored their own workbooks. "It gave them confidence in our data and saved everyone time."
AI is making waves across finance, but its real value lies in structured data. Lease extraction tools, anomaly detection, and automated reporting are just the beginning.
“AI can’t replace judgment,” Noraini noted, "but it can reduce risk and improve efficiency in high-volume, repeatable tasks."
Building tech that solves real problems is a key driver for the LOIS team. Whether it’s smarter data interrogation or intuitive interfaces, the goal is to make people’s jobs easier.
Beyond compliance, streamlining IFRS 16 delivers personal benefits. Teams gain time, reduce stress, and focus on value-added work.
"People want to do meaningful analysis, not repetitive tasks," Noraini shared. "A structured process frees up time and improves job satisfaction."
If you’re losing a week each month to manual processes, investing in a system pays for itself quickly, especially in decentralised organisations.
IFRS 16 compliance doesn’t have to be painful. With the right foundations. clean data, clear policies, and fit-for-purpose systems, organisations can transform a compliance burden into a strategic asset. Learn how LOIS can help you stay audit-ready and ahead of the curve today.