Reads Indian lease PDFs + Schedule III disclosures — ind as 116 lease accounting software with IFRS 16 parity.
Manual Ind AS 116 lease accounting for a 50+ lease portfolio (offices, warehouses, vehicles, equipment) consumes 3–5 working days every quarter. Four judgement-point failure modes drive the restatement risk at every annual close.
Each agreement requires commencement date, lease term, payments and renewal clauses extracted into a spreadsheet model — before any accounting judgement begins. Office + warehouse + equipment + vehicle leases all use different layouts, so keying errors are routine.
Paragraph 26 requires the lease liability to be PV-discounted at the IBR — documented and supportable at commencement. Without an audit trail showing rate basis (treasury memo, prior borrowing), the PV calculation cannot be independently verified.
CPI-linked rent clauses (RBI / Labour Bureau index references) silently understate the liability the moment the index resets. Without an automated re-measurement trigger under paragraph 42, the schedule drifts month by month.
A renewal agreement that grants additional ROU at a stand-alone price is a new lease under paragraph 44, not a modification. Misclassifying it collapses two schedules into one — misstating opening ROU balance and Schedule III disclosure.
Per quarter for a mid-market controller working on a 50–500 lease portfolio. SA 500 (Audit Evidence) and SA 540 (Auditing Accounting Estimates) auditors who find an undocumented IBR, misclassified renewal, or un-remeasured index payment will raise an audit qualification or require a prior-period restatement — flowing directly into Schedule III balance sheet disclosure.
Ind AS 116 is India’s adoption of IFRS 16, mandatory for all Ind AS reporters from FY 2019–20. Four paragraphs drive every measurement — each one is a judgement point that has to be documented per lease.
Leases with term ≤ 12 months at commencement (5(a)) or low-value assets (5(b)) qualify for exemption from full recognition. The lessee must elect on a lease-by-lease or class basis — the election itself is part of the audit trail.
ROU asset = initial lease liability + initial direct costs + prepayments + restoration obligations (Para 24). Lease liability = PV of future payments at the IBR when rate implicit isn’t determinable (Para 26).
When index-linked or rate-linked payments change due to the reference index moving, the lessee must re-measure the lease liability using the revised payments and the discount rate at the date of re-measurement.
A modification that grants additional ROU not in the original contract — at a stand-alone price — is a separate new lease. Modifications that don’t meet the test require remeasurement of the existing liability and corresponding ROU adjustment.
Schedule III of the Companies Act 2013 requires ROU assets and lease liabilities to be disclosed separately in the balance sheet — meaning an error in the underlying schedule flows directly into a statutory disclosure error, not just an internal calculation error.
Seven deterministic steps that turn an Indian lease PDF into a complete ROU + lease liability schedule with Schedule III disclosures — every output traceable to the source clause.
Accepts PDFs classified as Lease Agreement, Lessor, or Property documents and routes each to the appropriate extraction model without manual sorting.
From each lease: commencement date, lease term, payment amounts and frequency, renewal option clauses, variable/index-linked payment terms, asset description, and any stated implicit interest rate.
Computes the remaining lease term, compares the asset description against a configurable low-value threshold, and applies the short-term or low-value exemption — or proceeds to full recognition with the rationale recorded.
Scans document titles and extracted terms for renewal indicators or scope-change language. Where Para 44 criteria are met (new ROU at stand-alone price), classifies the event as a new lease and opens a fresh schedule rather than treating it as a modification.
Where a single agreement contains multiple distinct components (e.g. warehouse space + integrated racking), identifies each, allocates consideration on a relative stand-alone price basis or records the practical-expedient election (Para 15), and produces a separate amortisation schedule per component.
If no implicit rate is stated, surfaces an IBR input pre-populated with the lessee’s most recently recorded borrowing rate, blocks finalisation until a rate is confirmed, records the chosen rate + justification, and computes the opening lease liability under Para 26.
Outputs the complete amortisation table (opening ROU, depreciation, interest, payment allocation, closing balances) plus a re-measurement trigger record for any index-linked payment requiring update when the reference index changes (Para 42).
The workflow ships with a battery of synthetic test scenarios that exercise every failure mode we have seen in real-world data. Each scenario produces a deterministic outcome that an auditor or controller can verify in seconds.
Seeded sample files used to demonstrate this workflow. Each one exercises a specific scenario or failure mode.
Equipment lease for office solutions; demonstrates extraction of asset description, commencement date, lease term, and periodic payment amounts for a non-property ROU asset under Ind AS 116.
Logistics warehouse lease; used to validate extraction of square footage, escalation clauses, and security deposit amounts, and to confirm correct classification as a finance or operating lease.
Renewal agreement for a commercial property; tests the workflow's ability to detect a lease modification event and determine whether it qualifies as a new lease under Ind AS 116 paragraph 44.
Mixed-use agreement covering both premises and embedded equipment; demonstrates multi-component separation logic and allocation of consideration across distinct lease components per Ind AS 116 paragraph 12.
The Cadel Ind AS 116 lease accounting workflow replaces manual PDF transcription and spreadsheet modelling with structured extraction and rule-based classification — eliminating the four most common sources of restatement risk in lease portfolios.
The questions accountants and finance controllers ask most often before deploying this workflow.
