Accounting for security Deposit not as per IFRS 16

Summary:

Lease Accounting Module is not complying with IFRS 16 for Audit Purposes for Finance Lease. Security Deposit Accounting is not the same as provided in IFRS 16. Attaching IFRS 16 extract for security deposit accounting which is creating compliance issues for auditors.

Oracle Entry on Security Deposit One Time Payment (ROU Enabled)-

ROU Security Deposit Dr. 1000000

To Security Deposit Reserve 1000000

Security Deposit Booking Entry As per IFRS-

Security Deposit Dr. 620000

ROU Prepaid Asset Dr. 380000

To Bank 1000000

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