SDM-Bank was prepared for IFRS 16 and Provision No. 659-P with assistance of Diasoft

2020: Implementation of Diasoft of "Obligation for lease"

The Diasoft company developed the industrial solution "Obligations for Lease" for the purpose of support of IFRS (IFRS) 16 "Lease" and Provision of the Central Bank of the Russian Federation No. 659-P defining the last requirements of accounting of lease agreements and acted technology as the partner of SDM-bank in the project of automation of these legislative changes in the current business processes. Diasoft reported about it on June 17, 2020.

For execution of requirements of the regulator in SDM-bank it was required to upgrade the complete solution on automation of business activities consisting of components for settling with accountable persons and calculation of reserves on accounting of fuels and lubricants and economic agreements.

At the first stage of the project the joint command of bank and Diasoft company updated the solutions set in SDM-bank. Implementation in bank of the developed product of Diasoft conforming to requirements of Provision of the Bank of Russia No. 659-P – "Obligations for lease" became the second stage of works.

Deadlines were complexity of the project – it was required in 3 months which remained till January, 2020, to implement all works, including implementing solutions, – Oleg Ilyukhin, the vice chairman of the board, the director of the department of information technologies of SDM-bank says. – Through joint efforts we managed to cope with all tasks. Besides, we optimized a number of business processes of accounting and also integrated the Diasoft software product with our corporate data warehouse of SAP BW".

We once again supported financial institutions in accomplishment of changes of the legislation - it is the significant, responsible and strong area of work of our company. But without support and the involvement of the customer successful cooperation is hardly possible. Therefore we consider that this project according to IFRS 16 took place, first of all, thanks to professionalism and high competence of specialists and the managements of SDM-bank.

The Lease IFRS (IFRS) 16 standard became effective on January 1, 2019. According to requirements of this standard tenants should recognize practically all lease agreements in the balance sheet to reflect the right to use an asset during the certain time frame and the corresponding obligation for payments. Further, since January 1, 2020, became effective Provision of the Central Bank of the Russian Federation No. 659-P which sets a reflection order on accounts of accounting of lease agreements.