Frequently Asked Questions
ContractHive is an AI-powered lease accounting platform built specifically for IFRS 16 compliance. It automates the entire lease lifecycle — from scanning and extracting data from lease contracts, to calculating Right-of-Use (ROU) assets and lease liabilities, to generating audit-ready financial reports and journal entries.
It’s designed for organisations of all sizes that have lease portfolios — real estate companies, banks, retailers, multinational corporations, and equipment lessors. Whether you have dozens or thousands of leases, ContractHive handles lessee accounting (ROU assets and liabilities) and lessor accounting (operating vs finance lease classification), including complex transactions like sale-and-leaseback and subleases.
Not at all. ContractHive is designed to be used by a wide range of professionals — from finance and accounting teams to leasing managers and real estate portfolio administrators.
The platform does the heavy lifting for you. You upload your lease contracts (PDFs, Word documents, even scanned paper copies), and the AI extracts key terms like commencement dates, payment schedules, escalation clauses, renewal options, and discount rates. The engine then automatically calculates the ROU asset, lease liability, and amortisation schedules. You don’t need to be an IFRS 16 expert to get accurate, compliant results — the platform handles the complex math behind the scenes so you can focus on managing your portfolio.
IFRS 16 is the global accounting standard for leases, effective from January 2019. Before IFRS 16, many operating leases were kept off the balance sheet. Under IFRS 16, virtually all leases must now be recognised on the balance sheet as a Right-of-Use (ROU) asset and a corresponding lease liability.
For organisations with large lease portfolios — property, vehicles, equipment, IT infrastructure — the computational burden is enormous. You need to calculate initial ROU assets and liabilities, re-measure them when lease terms change, handle modifications (which require a revised discount rate), track escalations and renewals, and produce extensive quantitative disclosures. Doing this in spreadsheets becomes error-prone and almost impossible to audit at scale. ContractHive automates all of this, reducing manual processing time by up to 90%.
ContractHive uses optical character recognition (OCR) and natural language processing (NLP) to read your lease contracts like a trained analyst would.
You upload a lease document — whether it’s a clean PDF, a Word file, a scanned image, or even a paper contract photo. The AI engine extracts key information: parties to the lease, commencement date, lease term, payment schedules, escalation clauses (e.g., 3% annual increases), renewal and termination options, security deposits, residual value guarantees, and restoration obligations.
The system achieves over 95% accuracy on clean documents and processes most contracts in under 60 seconds. Every extracted field is traceable back to the source clause in the original document, which is crucial for auditability. Low-confidence fields are flagged for human review, giving you the perfect balance of automation and control.
Yes, ContractHive supports both sides of the lease transaction.
- Lessee accounting(the tenant or renter): The platform calculates the initial ROU asset (lease liability + initial direct costs + prepaid payments − lease incentives) and the lease liability (present value of future lease payments). It then handles subsequent measurement, interest expense recognition, and ROU asset depreciation.
- Lessor accounting(the landlord or equipment owner): The platform classifies leases as either operating or finance leases, recognises selling profit on finance leases, tracks residual values, and handles lease income recognition.
It also handles complex transactions like sale-and-leaseback (including transfer-of-control testing and gain recognition limitations) and subleases.
Under IFRS 16, a lease modification — such as a term extension, a change in payment amounts, or a scope change — triggers a re-measurement event that requires a revised discount rate.
ContractHive handles this automatically. When a lease is modified, you simply update the contract terms in the platform. The engine re-calculates the lease liability using the revised discount rate, adjusts the ROU asset, and generates the appropriate journal entries. It tracks the full modification history and provides a complete audit trail.
The same applies to impairments, variable lease payments, CPI indexation, and restoration obligations. Everything is re-measured correctly, every time.
ContractHive is built for auditability from the ground up. Every calculation — from initial ROU asset recognition to subsequent re-measurement — is fully documented and traceable. The platform has been audited by Big 4 firms (Deloitte, EY, KPMG, and PwC) with a 100% approval rate across over 200 audits.
Every journal entry carries a complete audit trail back to the source clause in the original contract. The platform generates IFRS 16.53-59 quantitative disclosures, maturity analyses, expense breakdowns, and AARO-ready journal exports in minutes. If you’re ever questioned by auditors or regulators, you have full visibility into every step of the calculation.
Yes. ContractHive is built to fit into your existing technology stack.
It integrates directly with major ERP systems like SAP, Oracle, and Microsoft Dynamics for seamless GL posting. It exports journal entries directly to AARO Systems AB for group consolidation. It also integrates with DocuSign for e-signature automation, Microsoft 365 for document sync, Salesforce for CRM integration, and Slack or Teams for collaboration alerts.
The platform is designed to be the central hub for all your lease data, feeding into your existing financial workflows without disrupting them.
ContractHive comes with a 14-day standard implementation window. This is a dramatic improvement compared to the months or even years often required with legacy systems or custom-built spreadsheet solutions.
The platform is cloud-native and designed for rapid deployment, with pre-configured templates for 14 different markets (including UAE, Pakistan, Saudi Arabia, UK, Canada, and Kazakhstan). Each deployment ships with regional regulatory templates, ROU asset calculation, lease liability amortisation, modification accounting, and audit-ready disclosure packs formatted for the local supervisor.
Absolutely. ContractHive is built for multi-jurisdiction, multi-currency lease portfolios.
It supports leases in over 20 languages and handles contracts from 40+ countries. The platform comes with jurisdiction-specific templates for 14 major markets, each configured to meet local regulatory requirements — including CBUAE (UAE), SBP (Pakistan), SAMA (Saudi Arabia), and others.
For multi-entity organisations, ContractHive rolls up lease data across subsidiaries, currencies, and jurisdictions for group-level reporting and consolidation. Whether you have a few dozen leases in one country or tens of thousands across the globe, the platform scales to meet your needs.