{"id":999980021,"date":"2026-02-09T16:15:55","date_gmt":"2026-02-09T09:15:55","guid":{"rendered":"https:\/\/bizzi.vn\/?p=999980021"},"modified":"2026-06-03T23:31:34","modified_gmt":"2026-06-03T16:31:34","slug":"how-to-optimize-rental-costs-using-ifrs-16","status":"publish","type":"post","link":"https:\/\/bizzi.vn\/en\/how-to-optimize-rental-costs-using-ifrs-16\/","title":{"rendered":"How to optimize rental costs according to IFRS 16: What strategies are available for CFOs?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Many CFOs expect IFRS 16 to help businesses &quot;reduce rental costs&quot; by changing accounting methods. However, in reality, IFRS 16 <\/span><b>does not reduce rental cash flow<\/b><span style=\"font-weight: 400;\">This can make rental costs even more difficult to control if contract, invoice, and payment data are not tightly managed.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This article helps CFOs understand the true nature of IFRS 16, clearly distinguish between accounting costs and economic costs, and thereby build a sound accounting system. <\/span><b>How to optimize rental costs according to IFRS 16<\/b><span style=\"font-weight: 400;\"> Based on control over contracts, invoices, cash flow, and operational decisions \u2013 rather than just looking at accounting metrics.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Index<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/bizzi.vn\/en\/how-to-optimize-rental-costs-using-ifrs-16\/#IFRS_16_co_giup_doanh_nghiep_giam_chi_phi_thue_khong\" >Does IFRS 16 help businesses reduce rental costs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/bizzi.vn\/en\/how-to-optimize-rental-costs-using-ifrs-16\/#Chi_phi_thue_ke_toan_va_chi_phi_thue_kinh_te_khac_nhau_nhu_the_nao\" >How do the costs of hiring an accountant differ from the costs of hiring an economic services provider?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/bizzi.vn\/en\/how-to-optimize-rental-costs-using-ifrs-16\/#Dau_la_cac_don_bay_thuc_su_giup_giam_chi_phi_thue_theo_IFRS_16\" >What are the real levers that help reduce rental costs under IFRS 16?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/bizzi.vn\/en\/how-to-optimize-rental-costs-using-ifrs-16\/#Vi_sao_chi_phi_thue_thuong_bi_doi_len_sau_IFRS_16_do_kiem_soat_kem\" >Why do rental costs often increase after IFRS 16 due to poor control?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/bizzi.vn\/en\/how-to-optimize-rental-costs-using-ifrs-16\/#Chuoi_kiem_soat_chi_phi_thue_hieu_qua_theo_IFRS_16_gom_nhung_buoc_nao\" >What are the steps involved in an effective lease cost control chain under IFRS 16?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/bizzi.vn\/en\/how-to-optimize-rental-costs-using-ifrs-16\/#CFO_nen_do_luong_hieu_qua_toi_uu_chi_phi_thue_theo_IFRS_16_bang_chi_so_nao\" >What metrics should a CFO use to measure the effectiveness of optimal leasing cost performance under IFRS 16?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/bizzi.vn\/en\/how-to-optimize-rental-costs-using-ifrs-16\/#Cau_hoi_lien_quan_ve_noi_dung_cach_toi_uu_chi_phi_thue_theo_IFRS_16\" >The question relates to how to optimize rental costs according to IFRS 16.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/bizzi.vn\/en\/how-to-optimize-rental-costs-using-ifrs-16\/#Ket_luan_CFO_can_lam_gi_de_toi_uu_chi_phi_thue_theo_IFRS_16\" >Conclusion: What should CFOs do to optimize hiring costs under IFRS 16?<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"IFRS_16_co_giup_doanh_nghiep_giam_chi_phi_thue_khong\"><\/span><b>Does IFRS 16 help businesses reduce rental costs?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">IFRS 16 <\/span><b>does not reduce actual rental costs.<\/b><span style=\"font-weight: 400;\">This standard only changes the accounting treatment by bringing lease agreements onto the balance sheet. The cash flow from lease payments remains unchanged, unless the CFO proactively optimizes the lease and operations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In essence, IFRS 16 requires businesses to recognize <\/span><b>ROU Asset (Right-of-Use Asset)<\/b><span style=\"font-weight: 400;\"> \u2013 property rights \u2013 and <\/span><b>Lease Liability<\/b><span style=\"font-weight: 400;\"> \u2013 the obligation to rent \u2013 for most lease agreements.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">ROU Assets reflect the right to use an asset for the duration of a lease and are depreciated gradually. Lease Liability reflects future lease payment obligations, recognized as a liability and with interest amortized over time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The problem arises when multiple CFOs see it. <\/span><b>EBITDA increased<\/b><span style=\"font-weight: 400;\"> Following IFRS 16, it was assumed that rental costs had been optimized. In reality, the increase in EBITDA was solely due to the separation of rental costs into depreciation and interest expense. <\/span><b>does not reflect the rental cash outflow.<\/b><span style=\"font-weight: 400;\">If decisions are based on P&amp;L rather than cash outflow, businesses may misjudge the effectiveness of leasing, leading to suboptimal long-term leasing or lease extension decisions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Therefore, the right decision under IFRS 16 needs to be based on: <\/span><b>Actual cash outflow and total lifetime cost of the lease contract.<\/b><span style=\"font-weight: 400;\">Instead of just looking at the business performance report.<\/span><\/p>\n<ul>\n<li><strong><em>See more content analyzing what International Financial Reporting Standards (IFRS) are. <a href=\"https:\/\/bizzi.vn\/chuan-muc-ifrs-la-gi\/\">here<\/a><\/em><\/strong><\/li>\n<\/ul>\n<figure id=\"attachment_999980024\" aria-describedby=\"caption-attachment-999980024\" style=\"width: 852px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-999980024 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/02\/cach-toi-uu-chi-phi-thue-theo-ifrs-16-2.png\" alt=\"How to optimize rental costs according to IFRS 16\" width=\"852\" height=\"567\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/02\/cach-toi-uu-chi-phi-thue-theo-ifrs-16-2.png 852w, https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/02\/cach-toi-uu-chi-phi-thue-theo-ifrs-16-2-300x200.png 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/02\/cach-toi-uu-chi-phi-thue-theo-ifrs-16-2-768x511.png 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/02\/cach-toi-uu-chi-phi-thue-theo-ifrs-16-2-18x12.png 18w\" sizes=\"(max-width: 852px) 100vw, 852px\" \/><figcaption id=\"caption-attachment-999980024\" class=\"wp-caption-text\">Essentially, IFRS 16 requires businesses to recognize ROU Assets (Right-of-Use Assets) and Lease Liability for most lease agreements.<\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Chi_phi_thue_ke_toan_va_chi_phi_thue_kinh_te_khac_nhau_nhu_the_nao\"><\/span><b>How do the costs of hiring an accountant differ from the costs of hiring an economic services provider?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Accounting fees reflect the recognition method under IFRS 16, while economic fees reflect... <\/span><b>total amount the business actually has to pay over the lifetime of the lease agreement.<\/b><span style=\"font-weight: 400;\">CFOs can only optimize costs by focusing on an economic perspective.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to IFRS 16, rental expenses on the profit and loss statement are shown as follows: <\/span><b>ROU Asset depreciation and interest expense<\/b><span style=\"font-weight: 400;\">but these two amounts <\/span><b>does not represent the total rental cost.<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">From a management perspective, the CFO needs to focus on the entire rental cash flow generated over time, including fixed rent, rent adjusted for price indices, associated service costs, and other contractual expenses.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One correct approach is to look at <\/span><b>Lease Lifecycle Cost<\/b><span style=\"font-weight: 400;\">This is determined by the total cash outflows for each period throughout the contract&#039;s lifespan. Relying solely on accounting reports, businesses can easily fall into the trap of long-term leases with unfavorable terms or contract renewals without fully assessing the actual costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once the correct cost optimization needs to be understood, the next question is: where can the CFO intervene?<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Dau_la_cac_don_bay_thuc_su_giup_giam_chi_phi_thue_theo_IFRS_16\"><\/span><b>What are the real levers that help reduce rental costs under IFRS 16?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">IFRS 16 does not inherently create leverage for reducing rental costs. <\/span><b>Strategy for reducing rental costs according to IFRS 16<\/b><span style=\"font-weight: 400;\"> This includes contract negotiations, lease term management, invoice control, and cash flow management throughout the contract lifecycle.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Lease agreements are a major determinant of lease costs. IFRS 16 merely reflects what has already been agreed upon, rather than automatically optimizing. If lease terms are long, inflexible, involve unfavorable service bundles, or have unclear price adjustment mechanisms, costs will continue to escalate regardless of accounting standards.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The CFO&#039;s role here is to coordinate between Finance, Procurement, and Legal to reassess contract structures, consider renegotiating terms, separate services from lease agreements, or terminate contracts that no longer generate value.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In reality, many rental cost increases are not due to contracts, but rather to operational deviations.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Vi_sao_chi_phi_thue_thuong_bi_doi_len_sau_IFRS_16_do_kiem_soat_kem\"><\/span><b>Why do rental costs often increase after IFRS 16 due to poor control?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Following IFRS 16, businesses have to manage more lease contracts with complex payment terms. Without proper control over invoices and payments, lease costs can easily increase due to incorrect payments, duplicate payments, or non-compliance with terms.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Common discrepancies include incorrect billing periods, incorrect unit prices, misapplication of adjustment indices, or services outside the contract. As contract volume increases, manual reconciliation is no longer sufficient to detect these discrepancies in a timely manner. <\/span><span style=\"font-weight: 400;\">As a result, <\/span><b>Overpayments that have lasted for many years.<\/b><span style=\"font-weight: 400;\">This directly impacts cash flow and rental efficiency, but is often only discovered during an audit.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At this stage, <\/span><b>Bizzi<\/b><span style=\"font-weight: 400;\"> Acting as an operational control layer, the system automatically collects and standardizes rental invoices, cross-referencing them with contracts and approval flows, helping CFOs detect discrepancies before spending money \u2013 rather than dealing with the consequences afterward.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Invoice control is just one part of a larger data chain that needs to be closed-loop.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Chuoi_kiem_soat_chi_phi_thue_hieu_qua_theo_IFRS_16_gom_nhung_buoc_nao\"><\/span><b>What are the steps involved in an effective lease cost control chain under IFRS 16?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">To <\/span><b>Cost-effective rental solutions according to IFRS 16<\/b><span style=\"font-weight: 400;\"> To be effective, businesses need to maintain control throughout the entire supply chain. <\/span><b>Contract \u2192 Invoice \u2192 Payment \u2192 Report<\/b><span style=\"font-weight: 400;\">, ensuring all rental payments are in accordance with terms, on time, and supported by data for decision-making.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A broken lease data chain can prevent CFOs from detecting unusual expenses, even if accounting reports appear &quot;up to standard.&quot; Investing in a control system connects operational data with financial reporting, creating a foundation for effective lease cost management.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bizzi supports this control chain through Bizzi Bot for reconciling rental invoices, Bizzi AP\/AR for monitoring accounts receivable and ensuring timely payments, and Bizzi Expense for tracking rental budgets in real time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">From operational control, CFOs need to measure performance to make strategic decisions.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"CFO_nen_do_luong_hieu_qua_toi_uu_chi_phi_thue_theo_IFRS_16_bang_chi_so_nao\"><\/span><b>What metrics should a CFO use to measure the effectiveness of optimal leasing cost performance under IFRS 16?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Following IFRS 16, many businesses continue to measure the effectiveness of leasing based on accounting metrics such as EBITDA, depreciation of assets used as leases, or interest income from lease obligations. However, these metrics primarily serve reporting and compliance purposes, and do not answer the most important question for CFOs: Is the business effectively managing its leasing costs? <\/span><b>Whether or not rent is paid correctly, in full, and at the right time.<\/b><span style=\"font-weight: 400;\">Without a system of indicators reflecting actual hiring costs, CFOs can easily make flawed hiring decisions even if the financial statements look good.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The first metric CFOs need to monitor is <\/span><b>The level of budget utilization for rental expenses is based on actual cash outflows.<\/b><span style=\"font-weight: 400;\">Instead of allocating costs on the income statement, comparing total rental cash outflows to the approved budget helps CFOs identify overspending early, especially since rent can fluctuate due to price indices, contract adjustments, or additional services. This is the foundation of optimizing rental costs under IFRS 16 from an economic perspective.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A more alarming indicator is<\/span><b> miscalculation of rental expenses,<\/b><span style=\"font-weight: 400;\"> This reflects the portion of money a business has spent that is not in accordance with the contract terms. In reality, many rental expenses are inflated not due to increased rental prices, but due to incorrect billing periods, incorrect unit prices, or the wrong adjustment mechanism being applied. Without measuring this rate, businesses may accept prolonged overpayments for many years without realizing it, even though IFRS 16 has been fully implemented.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">At the operational decision-making level, the CFO needs <\/span><b>Standardize rental costs by property or location.<\/b><span style=\"font-weight: 400;\">When costs are converted to a comparable unit, the CFO has a basis for assessing which contracts are creating value and which should be renegotiated or terminated. This approach shifts the focus from &quot;correct recognition&quot; to &quot;effective hiring,&quot; in line with the spirit of the IFRS 16 cost reduction strategy.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Finally, the most strategically important indicator is <\/span><b>total rental cost over the contract lifecycle<\/b><span style=\"font-weight: 400;\">This is calculated based on the total actual cash flow that has been and will be spent. Tracking lifecycle costs helps CFOs avoid the trap of contracts with low initial leases that increase sharply later, and supports decisions on renewing, terminating, or replacing leases. This is also an indicator that IFRS 16 accounting reports cannot provide on their own without operational data.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In reality, the biggest challenge for a CFO isn&#039;t identifying which metrics to track, but rather... <\/span><b>There is a lack of actual data that is detailed and timely enough to measure.<\/b><span style=\"font-weight: 400;\">This is where Bizzi plays its role as a layer of control before the accounting system.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By automatically collecting, standardizing, and comparing lease invoices with contracts and budgets, Bizzi helps CFOs see real-time lease cash flow, detect discrepancies before payment, and build a reliable data foundation for management metrics. This allows cost optimization KPIs under IFRS 16 to truly become decision-making tools, rather than just existing on reports.<\/span><\/p>\n<figure id=\"attachment_999980023\" aria-describedby=\"caption-attachment-999980023\" style=\"width: 1000px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-999980023 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/02\/cach-toi-uu-chi-phi-thue-theo-ifrs-16-1.jpg\" alt=\"How to optimize rental costs according to IFRS 16\" width=\"1000\" height=\"355\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/02\/cach-toi-uu-chi-phi-thue-theo-ifrs-16-1.jpg 1000w, https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/02\/cach-toi-uu-chi-phi-thue-theo-ifrs-16-1-300x107.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/02\/cach-toi-uu-chi-phi-thue-theo-ifrs-16-1-768x273.jpg 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/02\/cach-toi-uu-chi-phi-thue-theo-ifrs-16-1-18x6.jpg 18w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-999980023\" class=\"wp-caption-text\">In reality, the biggest challenge for CFOs isn&#039;t identifying which metrics to track, but rather the lack of sufficiently detailed and timely actual data to measure them.<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Cau_hoi_lien_quan_ve_noi_dung_cach_toi_uu_chi_phi_thue_theo_IFRS_16\"><\/span><b>The question relates to how to optimize rental costs according to IFRS 16.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Does IFRS 16 increase total rental costs?<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> No, IFRS 16 does not increase the total cost of economic leasing, but it may make the cost appear &quot;larger&quot; because it is shown on the balance sheet.<\/span><\/p>\n<p><b>Should businesses renegotiate lease agreements after IFRS 16?<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> Yes, especially with long-term contracts or unfavorable terms where the full lifetime cost of the lease is clearly visible.<\/span><\/p>\n<p><b>Which rental costs are most easily overlooked when using manual control?<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> Index adjustments, bundled service fees, and incorrect billing periods are common risks.<\/span><\/p>\n<p><b>How does IFRS 16 affect the decision to lease or buy?<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> IFRS 16 clarifies lease costs on the balance sheet, helping CFOs compare lease-purchase based on actual cash flow and financial leverage.<\/span><\/p>\n<p><b>What risks do auditors typically uncover regarding rental costs?<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> The most common issues include prolonged overpayments, invoice discrepancies, and a lack of supporting documentation for contract verification.<\/span><\/p>\n<p><b>Should services be separated from a lease agreement?<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> Therefore, it helps to make costs more transparent, easier to negotiate, and more controllable under IFRS 16.<\/span><\/p>\n<p><b>Should CFOs monitor rental costs on a monthly basis or over their lifetime?<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> Throughout the contract lifecycle, incorporate periodic monitoring to avoid missing long-term cost trends.<\/span><\/p>\n<ul>\n<li><em><strong>See also Common mistakes when applying IFRS 16 <a href=\"https:\/\/bizzi.vn\/sai-sot-thuong-gap-khi-ap-dung-ifrs-16\/\">here<\/a><\/strong><\/em><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Ket_luan_CFO_can_lam_gi_de_toi_uu_chi_phi_thue_theo_IFRS_16\"><\/span><b>Conclusion: What should CFOs do to optimize hiring costs under IFRS 16?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In essence, <\/span><b>IFRS 16 does not automatically help businesses reduce rental costs.<\/b><span style=\"font-weight: 400;\">This standard only requires the CFO to clearly see all existing lease obligations on the balance sheet. The crucial question is no longer... <\/span><i><span style=\"font-weight: 400;\">&quot;Does IFRS 16 help reduce rental costs?&quot;<\/span><\/i><span style=\"font-weight: 400;\"> but <\/span><b>Does the business have sufficient data and control capabilities to leverage IFRS 16 to optimize costs?<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, <\/span><b>How to optimize rental costs according to IFRS 16<\/b><span style=\"font-weight: 400;\"> The most effective approach lies in accurately measuring the financial impact of each lease agreement, and then developing strategies accordingly. <\/span><b>Rent reduction strategy according to IFRS 16<\/b><span style=\"font-weight: 400;\"> Based on data rather than emotion, CFOs need a clear view of leasing costs per business unit, per term, and per renewal clause to proactively renegotiate, restructure the leasing portfolio, or adjust operating strategies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, as the number of lease agreements increases and data is dispersed between accounting, purchasing, and operations, manual tracking will turn IFRS 16 into a compliance burden rather than a management tool. This is where businesses need a solution. <\/span><b>Cost-effective rental solutions according to IFRS 16<\/b><span style=\"font-weight: 400;\"> It is systemic in nature.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bizzi acts as a pre-ERP cost and contract control layer, enabling CFOs to centralize leasing data, track cash outflows, alert on impending lease obligations, and provide reliable input for IFRS 16 recording. Instead of simply &quot;recording for compliance,&quot; CFOs can use Bizzi to proactively and effectively analyze, compare, and make optimal leasing cost decisions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the context of increasing cost pressures and financial transparency, <\/span><b>IFRS 16 only truly delivers its value when combined with a smart cost control framework.<\/b><span style=\"font-weight: 400;\">For CFOs, investing in a solution like Bizzi is not just about compliance, but a strategic move to turn IFRS 16 into a long-term management advantage.<\/span><\/p>\n<p><strong><em>To receive a one-on-one consultation and experience Bizzi&#039;s solutions, register here: <a href=\"https:\/\/bizzi.vn\/dang-ky-dung-thu\/\">https:\/\/bizzi.vn\/dang-ky-dung-thu\/<\/a><\/em><\/strong><\/p>","protected":false},"excerpt":{"rendered":"<p>Nhi\u1ec1u CFO k\u1ef3 v\u1ecdng IFRS 16 s\u1ebd gi\u00fap doanh nghi\u1ec7p \u201cgi\u1ea3m chi ph\u00ed thu\u00ea\u201d nh\u1edd thay \u0111\u1ed5i c\u00e1ch ghi nh\u1eadn k\u1ebf to\u00e1n. Tuy nhi\u00ean, tr\u00ean&#8230;<\/p>","protected":false},"author":56,"featured_media":999980022,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[54],"tags":[],"class_list":["post-999980021","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-so-tay-ke-toan"],"acf":[],"_links":{"self":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999980021","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/comments?post=999980021"}],"version-history":[{"count":1,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999980021\/revisions"}],"predecessor-version":[{"id":999980025,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999980021\/revisions\/999980025"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media\/999980022"}],"wp:attachment":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media?parent=999980021"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/categories?post=999980021"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/tags?post=999980021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}