If you manage leases under IFRS 16, you know how time-consuming it can be to ensure all inputs for a lease liability calculation are accurately identified. That’s where this Python-based “IFRS 16 Lease Contract Reader” comes in. It uses OpenAI’s ChatGPT model to read your contract in Word format and automatically pull out essential data for the lease liability and right-of-use (RoU) asset schedules.

For this tool, you need to provide your OpenAI API key.

Next, the program calls ChatGPT to analyze the lease text. It extracts key variables such as lease payment, payment frequency, whether payments are upfront or in arrears, total number of payments, and more. It also, for example, checks details about direct costs, incentives, and indexation.

The script writes two things to Excel: a short “Lease Summary” and a “Reviewed Values” sheet containing the finalized numeric fields. These are the inputs you need to feed into your IFRS 16 calculations. It is however always important to review the output, and the underlying document.

The output looks as follows:

Dummy data: