Article Overview:
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FAQ: Are formulas included in the exported amortization schedule?
- FAQ: Why is the appropriate Amortization Schedule not visible in the select schedule dropdown?
- ASC 840/842 Amortization Schedules
- IFRS 16 Amortization Schedules
With LeaseGuru, users can automatically generate ASC 840, ASC 842 or IFRS 16 amortization schedules for individual leases.
View an Amortization Schedule
Users can view amortization schedules on all LeaseGuru plans.
To generate an amortization schedule for an individual lease, follow these steps:
1. Log in to your LeaseGuru account.
2. Add a lease by selecting the "Add Lease" button in your account dashboard. (Note: If you already have a lease in your account, then you can skip this step.)
3. Select a lease from your dashboard.
4. Scroll past the lease details to find the "Amortization Schedule" tab which should automatically be selected.
Select Amortization Schedule Type
There are a few different schedule options for your amortization schedule in LeaseGuru.
To view the amortization schedule under topic ASC 840, ASC 842 or IFRS 16, click the "select schedule" button as shown below. (Please note: the options you see will be determined by the standard you selected when creating your account).
You may view just the base rent version or select the total fixed consideration option.
- Base Rent Amortization Schedule: Excludes fixed additional payments.
- Total Fixed Consideration Amortization Schedule: Fixed additional payments are included in the Total Fixed Consideration Amortization Schedule.
Show/Hide Columns
To change the columns you see in the amortization schedule, you may select "Show/Hide Columns". Next, you can deselect options to remove them from the schedule if you no longer want them to show.
Export an Amortization Schedule
To export an amortization schedule to Microsoft Excel, you will need to have a LeaseGuru Premium plan.
1. Once you are on a premium plan, follow the steps above to generate an amortization schedule.
2. When the amortization schedule has generated, select the "export to excel" button in the top right corner. This will automatically download your amortization schedule to your computer.
FAQ: Are formulas included in the exported amortization schedule?
No, the exported amortization schedule from LeaseGuru does not include formulas.
FAQ: Why is the appropriate Amortization Schedule not visible in the select schedule dropdown?
The availability of amortization schedules in the select schedule dropdown is contingent upon the type of lease created and the jurisdiction your company reports under.
GAAP:
- Finance/Capital Lease
- Topic 840/IAS 17 Base Rent
- Topic 84/IAS 17 Total Fixed Consideration
- Operating Lease
- Topic 840 Base Rent
- Topic 840 Total Fixed Consideration
- Topic 842 Base Rent
- Topic 842 Total Fixed Consideration
IFRS:
- Finance/Capital Lease
- IFRS 16 Base Rent
- IFRS 16 Total Fixed Consideration
- Operating Lease
- Topic 840/IAS 17 Base Rent
- Topic 84/IAS 17 Total Fixed Consideration
ASC 840/842 Amortization Schedules
Operating Leases
ASC 840 Lessee Leases – Fields Explained:
- Year= The year in the lease for that period
- Month= The month in the lease for that period
- Cash = Fixed Rent Payments
- Expense= Total cash payments for the lease term divided by lease term
- (Deferred)/Prepaid Rent= Cash - Expense
- Negative is deferred, positive is prepaid
- Cumulative Balance= Prior months cumulative balance + current month (Deferred)/Prepaid Rent
- Short Term Deferred Rent= Addition of next 12 months of positive prepaid deferred rent
- Long Term Deferred Rent= Delta between the short term and the total
- Short Term Prepaid Rent= Addition of next 12 months of negative prepaid deferred rent
- Long Term Prepaid Rent= Delta between the short term and the total
ASC 842 Lessee Leases – Fields Explained:
- Year= The year in the lease for that period
- Month= The month in the lease for that period
- Cash = Fixed Rent Payments
- Liability Lease Expense= Beginning Total Liability * Daily rate * Number days outstanding
- Daily rate= Borrowing rate divided by 365
- Note:The system uses a daily rate in order to derive a precise liability accounting for all the days in the year. Our Amortization Schedules are calculated using a Daily Rate (Rate/365 days) and that rate is multiplied by the number of days within the period multiplied by the prior period Liability balance. So, LeaseGuru essentially uses a blended periodic/daily rate to get a more accurate representation of the true Liability balance within a specific period.
- Daily rate= Borrowing rate divided by 365
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Liability Reduction= Cash - Interest Expense
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Total Liability= Previous Total Liability - Liability Reduction
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ST Lease Liab.= Sum the next 12 months of Liability Reduction (Positive only)
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LT Lease Liab.= Total Liability - ST Lease Liability
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Net Asset Balance= Prev month Net Asset Balance - Current month Asset Lease Exp
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Asset Lease Exp = Total Lease Exp (calculated below) - Liability Lease Exp
- Total Lease Exp = The total lease expense under ASC 842 is the sum of the remaining payments as of the transition -/+ any deferred/prepaid rent as of the transition, -/+ any incentive/initial direct cost balance, divided by the remaining term of the lease.
Finance (Capital) Leases
ASC 840/842 Lessee Leases – Fields Explained:
- Year= The year in the lease for that period
- Month= The month in the lease for that period
- Cash = Base rent
- Interest Expense= Beginning Liability * Daily rate * Number days outstanding
- Beginning Liability= Take total liability of the month prior to first lease term. In order to find this you need to finish the Total Liability column and run goal seek to set the last term Total Liability to 0 by changing the Beginning Liability
- Daily rate= Annual rate divided by 365
- Note:The system uses a daily rate in order to derive a precise liability accounting for all the days in the year. Our Amortization Schedules are calculated using a Daily Rate (Rate/365 days) and that rate is multiplied by the number of days within the period multiplied by the prior period Liability balance. So, LeaseGuru essentially uses a blended periodic/daily rate to get a more accurate representation of the true Liability balance within a specific period.
- Number of days outstanding= Number of days that the payment includes. For this you will need to set 1 day for the first of the month where the payment is paid and then the rest of the days in the term second (Example. March will have 1 day for the payment and then 30 days
- Liability Reduction= Cash - Interest Expense
- Total Liability= Previous Liability - Liability Reduction
- ST Capital Lease Liab.= Sum the next 12 months of Liability Reduction
- LT Capital Lease Liab.= Total Liability - ST Lease Liab
- Depreciation Expense= Gross Asset Balance / Lease Term
- Lease Term= The total number of periods in the lease (partial months should be counted as partial)
- Net Asset Balance= Prev month Net Asset Balance - Current month Depreciation Expense
- Prev month Net Asset Balance for first month= Gross Asset Balance
- Accumulated Depreciation= Previous month accumulated depreciation + Current month depreciation expense
- Gross Asset Balance= First month Total Liab + First month Liab Reduction + (Deferred) Prepaid Rent OR First month Net Asset Balance + First Month Depreciation Expense
- Gross asset balance should be the same for each period
IFRS 16 Amortization Schedules
Operating Leases
IAS 17 Leases – Fields Explained:
- Year= The year in the lease for that period
- Month= The month in the lease for that period
- Cash= Fixed Rent Payments
- Expense= Total cash payments for the lease term divided by lease term
- (Deferred)/Prepaid Rent = Cash - Expense
- Negative is deferred, positive is prepaid
- Cumulative Balance= Prior months cumulative balance + current month (Deferred)/Prepaid Rent
- Short Term Deferred Rent= Addition of next 12 months of positive prepaid deferred rent
- Long Term Deferred Rent= Delta between the short term and the total
- Short Term Prepaid Rent= Addition of next 12 months of negative prepaid deferred rent
- Long Term Prepaid Rent= Delta between the short term and the total
Finance (Capital) Leases
IFRS Cumulative Approach 2 - Fields Explained
- Year= The year in the lease for that period
- Month= The month in the lease for that period
- Cash= Fixed Rent Payments
- Interest Expense= Beginning Total Liability * Daily rate * Number days outstanding
- Beginning Total Liability= Take total liability of the month prior to first lease term. In order to find this you need to finish the Total Liability column and run goal seek to set the last term Total Liability to 0 by changing the Beginning Liability
- Daily rate= Borrowing rate divided by 365
- Note:The system uses a daily rate in order to derive a precise liability accounting for all the days in the year. Our Amortization Schedules are calculated using a Daily Rate (Rate/365 days) and that rate is multiplied by the number of days within the period multiplied by the prior period Liability balance. So, LeaseGuru essentially uses a blended periodic/daily rate to get a more accurate representation of the true Liability balance within a specific period.
- Number of days outstanding= Number of days that the payment includes. For this you will need to set 1 day for the first of the month where the payment is paid and then the rest of the days in the term second (Example. March will have 1 day for the payment and then 30 days
- Liability Reduction= Cash - Interest Expense
- Total Liability= Previous Total Liability - Liability Reduction
- Previous Total Liability= Total Liability in the previous term OR Present value of your minimum lease payments
- ST Lease Liab.= Sum the next 12 months of Liability Reduction (Positive only)
- LT Lease Liab.= Total Liability - ST Lease Liab
- Depreciation Expense= Gross Asset Balance / Lease Term
- Lease Term= The total number of periods in the lease (partial months should be counted as partial)
- Net Asset Balance= Prev month Net Asset Balance - Current month Depreciation Expense
- Prev month Net Asset Balance for first month= Gross Asset Balance
- Total Lease Expense= Interest Expense + Depreciation Exp
- Accumulated Depreciation= Previous month accumulated depreciation + Current month depreciation expense
- Gross Asset Balance= First month Total Liab + First month Liab Reduction + (Deferred) Prepaid RentORFirst month Net Asset Balance + First Month Depreciation Expense
- Gross asset balance should be the same for each period