TREASURY MANAGEMENT LEASING PORTFOLIO MANAGEMENT CASH & LIQUIDITY

The Leasing Module

A SOFTWARE SOLUTION

FOR THE MANAGEMENT OF

FINANCIAL INSTRUMENTS,

LEASING, CASH & LIQUIDITY

Are you prepared?

IFRS 16

You can finally replace hundreds of pages of spreadsheets and many manual calculations. The system calculates accrued interest, mark-to-market, unrealised profit and loss, brokerage, interest, agio, disagio, amortised cost etc. FX- and IBOR-rates, reference data and market prices can be imported from external sources, such as Bloomberg, Infront, Thomson Reuters and the Central Bank of Norway. The system takes care of requirements for back-, middle- and front office personnel.

Leasing module

Escali Leasing covers the requirements for accounting of leases according to IFRS 16. Simply enter the leases, and the system takes care of the rest! You get a full overview of the leases: Terms, maturity, cash flows and accruals.

The main features in the module are:

A register of all leases Get a full overview of all leases and terms in the system.

You can enter all types of leases and data such as term amount, payment frequency, start and buyout amount. The system even takes care of options and service elements related to the leases.

IFRS 16 - Accounting for leases

From January 1st 2019, a new regulatory framework for leases (IFRS 16) will apply. Businesses should therefore have in place a system which meets the new requirements.

The main feature of the new IFRS regulations is that the distincition between operational and financial leases more or less disappears. All leases must be included in the balance sheet statement. This means that the lease obligation is recognized as a liability in the balance sheet, with a corresponding “Right-to-use” on the asset side of the balance sheet.

The value of the lease obligation under IFRS 16 is based on the present value of future cash flows. The lease amount should be divided into an interest and an installment part. The “Right-to-use” on the asset side should be depreciated according to the corresponding regulations on other fixed assets.

This means that leases appear both in the balance sheet and the P&L account in the same way as assets funded by loans.

The distinction between financial and operational leases continues to apply for companies that use other accounting standards.

Register of all leasesס :Calculation and book-keeping ofס

Ĵ Lease obligation (debt in the balance sheet) Ĵ “Right-to-use” (asset in the balance sheet) Ĵ Interest and installments Ĵ Accruals

Export of ledger transactions to theס Accounting/ERP- system Calculation of implied interest andס present valueManagement of changes to the contractsס Management of options related to theס contractOverview of cash flowsס ס IFRS 16 notesס Integrated with BI-systems and MS Office Handles industry-specific requirementsס such as daily rates and double accounting currencies.

Calculation and book-keeping

The system will automatically calculate the lease obligation and the “Right-to-use” for the balance sheet. Escali Leasing will split the term amounts into interest and installments, depreciations and service fees, based on the terms of the agreement and calculated implied interest (IRR) or present value.

All these calulations can be automatically posted and exported to the accounting system. This also includes corrections in the balance sheet due to changes in the lease agreement.

The system also takes care of accruals.

Export of ledger transactions to ERP

B a s e d o n t h e c o m p a n y ’s C h a r t o f Accounts, the system can export ledger transactions to approximately 50 accounting systems.

Calculation of implied interest and present value

In agreements where the lease amounts and initial values are stated, the system will be able to calculate implied interest (IRR). This is used to distinguish the interest rate from the lease amount.

In cases where the initial value is unknown, the system will be able to calculate the present value based on the expected cash flows and the incre-mental borrowing rate.

Management of changes

Changes to the lease agreements can be easily managed in the module. If for example, the lease amount changes, a new implied interest will be calculated. Changes will normally require a re-calculation of present value for the leasing contract, based on existing implied interest.

Management of options

Escali Financials will handle options related to the leasing contract. Terms and dates for the option can be registered together with the probability of exercise.

Overview of cash flows

The module gives full overview of historical and future cash flows. These can also be exported to 3rd party solutions, such as OpusCapita, Trezone, Excel or BI systems.

The system enables you to perform cash flow analysis based on different interest and FX scenarios. You can also produce your own budgets and forecasts.

Other functionality

Escali Leasing covers all IFRS 16 notes and other reporting needs. The system covers dynamical dashboards and static reports.

The system can be integrated with existing BI-systems, Excel, 3rd party reporting tools and cash management systems.

The system also handles industry-specific requirements such as daily rates and double accounting currencies.

The module can be used as a stand-alone application, or together with other modules in Escali Financials.

Visiting addresses:Oslo: Bergen:

Phone: + 47 55 52 77 70 Blog: www.twitter.com/escalinoE-mail: salg@escali.no

Internet: www.escali.noOrg.no:NO-985205728 MVA

Escali Financial Systems ASP O box 52 KråkenesNO-5896 Bergen

Rosenkrantz gate 15Øvre Kråkenes 49

√ Handles instruments such as:• Bank deposits • Credit facilities• Leases• Loans• Options, warrants, forwards and futures• Interest swaps, FRA’s, caps and floors• FX: forwards, options, swaps and spot• Wwaptions• Bonds and treasury bills • Shares, funds and private equity

√ Multi-client system and consolidation abilities√ Handles operational cash flows√ Multi-currency system√ General ledger

• Automatic posting• Multiple ERP interfaces (+50)

√ Loans, leases, bank accounts, bonds and interest derivatives

• Calculates interest and installments• Calculates yield, price, duration and current portion of debt / leases• Cash flow forecasting and analysis• Analysis based on different interest and currency scenarios

√ FX / currencies• Pricing / M2M of FX derivatives• Calculates agio/disagio

√ Internal bank √ Settlement√ Portfolio management

• Performance on single positions, portfolios, clients and consolidated• Performance against benchmarks• Calculates price on bonds, options and forwards• Calculates realised and unrealised profit and loss• Allocation analysis• Strategy, attribution and risk

√ Automatic import of rates, transactions and reference data√ Flexible reporting • Approximately 200 predefined and well visualised static reports

• Several dynamical dashboards/reports• Export of reports to Excel, Word, PowerPoint, PDF, snapshot and HTML• Integrated with datawarehouses, BI- systems and 3rd party reporting tools

√ Liquidity management • Overview of cash flows • Import of bank balances • Export to Trezone and OpusCapita√ Tailored menus and access rights for different users√ Cloud-based (Software-as-a-Service) √ Back-, middle- and front-office

Key features Escali Financials

Escali Financials is one of the leading Treasury-, Leasing- and Portfolio Management System in the Nordics. The software solution has approximately 120 installations in corporate businesses, public sector, pension funds, insurance, bank and investment companies. Industries such as shipping, real estate, energy and industrials are well represented among our customers.

Some customers: