Volkswagen Financial Services Fleet has launched a free International Financial Reporting Standards 16 (IFRS 16) calculator to help fleet managers get on top of their accounts.

IFRS 16 means that all material operating leases will need to be recorded on the balance sheet, and the free tool will automatically calculate figures for the standard.

This means they can be correctly recorded on the balance sheet and disclosed on financial accounts ready for end-of-year audits.

Andrew Waller, head of business performance at Volkswagen Financial Services Fleet developed the calculator with his team.

He said all the fleet manager needs to do is list the vehicle details including registration, model, monthly rental costs, start and end of contract, any modifications on the vehicle and the revised rental costs.

The application calculates the lease as an asset with corresponding liabilities using the present value of payments over the lease term against the right-of-use asset.

It then works out the depreciation and interest that can be added into the profit and loss columns.

So far, more than 500 businesses have downloaded the calculator.

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