Adopting IFRS 16 (PSAK 73) Through Lease and Contract Management Implementation for a Leading Mining Contractor
- Industry
- Energy & Natural Resources
- Mining
- Client
- Leading Mining Contractor Company
- Service
- Technology Consulting
- Solution
- Adoption of Lease and Contract Management Through IFRS 16 (PSAK 73) Implementation
The Company is a leading mining contractor that leases a significant portion of its heavy equipment fleet and site facilities under long-term contracts. The introduction of IFRS 16 (PSAK 73) required the Company to systematically recognise right-of-use assets and lease liabilities across a large and varied lease portfolio.
- Manual tracking of lease contracts across business units, not structured for PSAK 73 compliance
- Disparate lease data spread across contracts, spreadsheets, and site-level records
- No systematic process to calculate right-of-use assets and lease liabilities at scale
- Risk of audit findings and compliance gaps ahead of the reporting deadline
- Limited finance team capacity to manually process a large lease population under compressed timelines
- IFRS 16 (PSAK 73) requires recognition of right-of-use assets and lease liabilities for substantially all leases, a major shift for equipment-heavy mining contractors
- Non-compliance carries real audit and regulatory risk, particularly for listed or audited entities
- A systematic lease management approach reduces manual accounting error and audit exposure at scale
- Given the size of a mining contractor's lease population, manual PSAK 73 compliance is not sustainable without a dedicated system
Lease Portfolio Diagnostic
Catalogued the Company's lease contracts across equipment, property, and facilities to build a complete lease population.
PSAK 73 Compliance Gap Assessment
Assessed current lease accounting practices against PSAK 73 requirements to identify compliance gaps.
Lease Management System Design & Configuration
Designed and configured a lease management system to centralise lease data and support standardised classification.
ROU Asset & Liability Calculation Automation
Automated the calculation of right-of-use assets and lease liabilities in line with PSAK 73 methodology.
Rollout & Finance Team Training
Rolled out the system with finance team training on ongoing lease management and reporting.
- Complete Lease Population Register
- PSAK 73 Compliance Gap Assessment Report
- Lease Management System Configuration
- Automated ROU Asset & Lease Liability Calculation
- Lease Classification & Accounting Policy Framework
- Audit-Ready Lease Reporting Templates
- Ongoing Lease Renewal & Modification Workflow
- Finance Team Training & Handover Programme
Full PSAK 73 Compliance
A systematic lease management process brought the Company's lease accounting into compliance with PSAK 73.
Centralised Lease Data
Lease contracts across equipment, property, and facilities are now centralised in one system, replacing scattered records.
Automated Calculations
Right-of-use asset and lease liability calculations are now automated, removing manual computation error.
Audit-Ready Reporting
Standardised reporting templates give the finance team audit-ready lease disclosures each period.
- 100%
- Lease population brought into PSAK 73 compliance
- 1
- Centralised lease management system replacing scattered records
- Significant
- Reduction in manual lease accounting effort each period (approx.)
- 0
- Audit findings related to lease accounting post-implementation
- Multiple
- Business units consolidated onto the lease management system
- 100%
- Leases automatically classified and calculated under the new framework
The Company now manages its full lease portfolio under a standardised, PSAK 73-compliant process, with automated calculation and audit-ready reporting each period. This removes the compliance risk and manual burden that a growing lease population would otherwise create.
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