#Japan #ERP #Minato #Plaza-i #Business Associates

Plaza-i Unveils New Lease Accounting Functions

Business Associates Co., Ltd., a company based in Minato, Tokyo, is excited to announce the launch of new functions in its ERP software, Plaza-i, specifically catered for the new lease accounting standards that will be implemented from April 1, 2027. This initiative aims to support small and medium-sized enterprises (SMEs) in adapting to these significant changes in accounting practices.

Background of Development

The new lease accounting standards redefine what constitutes a lease. Unlike previous frameworks where finance and operating leases were treated differently, now all lease contracts will be handled as on-balance-sheet transactions. Plaza-i has incorporated options based on IFRS Standard 16, which allows for enhanced compliance. The recent update leverages existing knowledge from these standards to introduce a robust feature set catering to the new regulations beginning May 22, 2026, as a preparatory step.

Features of the New Lease Accounting Function

With Plaza-i’s fixed asset management system (FAS), users can expect several new capabilities designed for ease and accuracy in accounting:

1. Automatic Calculation of Right-of-Use Assets and Lease Liabilities: Users can automatically calculate these financial components even in cases where existing contracts are being adjusted for transitional purposes.

2. Flexible Condition Settings for Various Contract Types: The system accommodates diverse transaction forms, payment schedules, interest calculations, and lease configurations, including short-term leases and free-rent options.

3. Adjustment for Lease Contract Changes: Users can easily recalculate lease liabilities and assets when contract terms or periods alter, ensuring that books reflect the current state of affairs.

4. Generation of Journal Entries: Plaza-i offers the capability to generate the necessary journal entries and can seamlessly integrate this data with other accounting systems.

5. Preparation of Financial Statement Disclosure Information: The system simplifies the gathering and extraction of essential information for disclosures in financial statements.

Plaza-i also plans to release additional features later this year, including support reports for tax compliance, maximizing the benefits of the new accounting approach.

Key Advantages

The new functions of Plaza-i present several advantages:

• - Reduced Practical Burdens: The update allows for a smooth transition to the new lease accounting standards without additional burdens on users.
• - Utilization of Existing Data: Current users can efficiently migrate using their existing fixed asset and lease contract data.
• - Comprehensive Management Integration: The new features form part of an integrated ERP solution, centralizing accounting and management operations.
• - No Additional License Costs: Current users of the existing lease option will not incur extra costs to access these new features.

About Plaza-i Fixed Asset Management

The fixed asset management component of Plaza-i supports construction-related accounting, impairment processing, lease accounting, and IFRS compliance, functioning both as a standalone system and a part of the comprehensive ERP package. With its adaptability to cloud and on-premise implementations, it meets varied operational needs. Notably, Plaza-i has been recognized as the top fixed asset management software in the IT Trend Annual Ranking 2025, demonstrating its market reputation.

Overview of Plaza-i ERP Package

Plaza-i is designed for mid-sized-to-small enterprises and serves a wide range of sectors, including trade, import/export, shipping, construction, and services. It integrates critical business processes like sales, purchasing, inventory management, and financial accounting, providing a holistic management system that reduces long-term costs by integrating custom development into standard offerings. To date, Plaza-i has been deployed in over 700 companies and across approximately 4,600 modules, showcasing its extensive implementation success.

About Business Associates Co., Ltd.

Founded in 1987, Business Associates is a seasoned system development company with a mission to bridge the gap between management and IT. The company has accumulated over 25 years of expertise, offering a comprehensive solution from development, consulting, support, to migration services.

For more information, visit Business Associates' Website.