How Arvexi automates multi-standard lease compliance

For organizations that report under multiple lease accounting standards, compliance has traditionally meant doing everything twice. One team manages the ASC 842 calculations. Another handles IFRS 16, often in a separate system with a separate process. At the end of each period, someone has to reconcile the two, explain the differences, and produce disclosures for each framework.

It is expensive. It is error-prone. And it does not scale.

Arvexi was built from the ground up to handle multi-standard compliance as a core capability, not an afterthought. The platform maintains a single lease record and generates parallel outputs under every applicable standard - eliminating the duplicated effort that makes compliance season feel like running two closes instead of one.

How parallel standard processing works

Every lease in Arvexi carries a standard assignment at the entity level. When a lease belongs to an entity that reports under ASC 842, the system generates ASC 842 schedules, journal entries, and disclosures. If the same entity also reports under IFRS 16 for a different consolidation, the system generates a parallel set of IFRS 16 outputs from the same underlying data.

Four architectural decisions make this possible:

Single data entry, multiple outputs. Lease terms are entered once. The system applies the calculation logic for each standard independently - using the correct classification rules, discount rate requirements, and expense recognition patterns for each framework.

Standard-specific policy elections. Each standard allows different practical expedients and elections. Arvexi maintains these at the standard level, so your ASC 842 elections never interfere with your IFRS 16 calculations.

Parallel amortization schedules. For any lease subject to multiple standards, you can view side-by-side schedules showing exactly how the same lease produces different balance sheet amounts and expense patterns under each framework. This is invaluable when auditors or leadership ask why the numbers differ.

Consolidated and standalone reporting. Generate disclosures at the entity level for standalone reporting or at the consolidated level for group reporting, with automatic aggregation and intercompany elimination where applicable.

Handling the differences that matter

The practical differences between ASC 842 and IFRS 16 are well understood, but they still cause problems when managed manually.

The most significant is lease classification. Under ASC 842, a lessee classifies leases as operating or finance, which determines the expense pattern. Under IFRS 16, nearly all leases follow a single model that resembles ASC 842's finance lease treatment. This means the same lease can produce straight-line rent expense under ASC 842 and front-loaded depreciation plus interest under IFRS 16.

Tracking these differences across hundreds of leases in a manual process is a reconciliation nightmare. In Arvexi, they are calculated automatically and presented clearly - so preparers and auditors can see exactly why the numbers differ between standards without rebuilding the analysis from scratch.

What changes when compliance is automated

Automated multi-standard compliance creates a positive cycle. When the calculations are reliable and the outputs consistent, audit preparation takes less time. When audits go smoothly, teams have bandwidth to focus on portfolio optimization rather than compliance firefighting.

And when the process is sustainable, adding new leases, new entities, or even new reporting standards does not create the operational burden it would in a manual environment. The compliance program scales with the organization, instead of constraining it.