Domestic ERP 'Plaza-i' Launches Support for New Lease Accounting Standards

Business Associates Co., Ltd. (Headquarters: Minato-ku, Tokyo; Representative Director: Taishi Sugimoto), developer and provider of ERP packages for small and medium-sized enterprises, announced the launch of support for the new lease accounting standards in its 'Plaza-i' Fixed Asset Management system (FAS).

This feature supports the new lease accounting standards, which will be fully applied from the fiscal year starting on or after April 1, 2027, and has been provided since May 22, 2026, to prepare for the new criteria.

Background The new lease accounting standards have redefined 'lease' contracts. Previously, contracts were distinguished as finance leases (on-balance sheet) or operating leases (rent/lease treatment). The new standard requires essentially all lease contracts to be recorded on the balance sheet. Plaza-i, which already implements optional features for IFRS 16 (Leases), has developed these new functions based on its accumulated knowledge. Current users of the existing lease option will not incur additional fees for this update.

Overview of Features - System: Plaza-i Fixed Asset Management System (FAS) - Main Features: 1) Automatic calculation of right-of-use assets and lease liabilities. 2) Flexible condition settings for various transaction forms and contract terms (e.g., payment frequency, interest calculation methods, short-term/small-amount leases, lease components vs. non-lease components, lessor leases, and free rent periods). 3) Support for lease contract revisions (recalculation of assets/liabilities upon term or condition changes). 4) Generation of journal entry data for integration with other accounting systems. 5) Support for creating note disclosures for financial statements. Future updates planned within the year include auxiliary reports for tax compliance adjustments where tax accounting differs from financial accounting.

About 'Plaza-i Fixed Assets' Plaza-i's Fixed Asset Management system covers construction-in-progress, impairment, lease accounting, asset retirement obligations, and IFRS. It can be used as a standalone system or as part of the broader ERP package. It was ranked first in the Fixed Asset Management category in the 'IT Trend Annual Ranking 2025' based on user inquiries.