In this report we will show all starting values and changes during the lease term that create accounting entries. Use only the base currency columns in your accounting.
You need this report to your Financial Notes when you need to split the different kinds of changes in your lease liability during certain financial periods.
Click on Reports > Lease Changes Report
Update all fields that are relevant to your report. All mandatory files will be filled in "essentials" area.
1) Entity is the company that is doing the reporting. (New Companies can be created under Settings > Companies).
2) The Counterparty is the Lessor. (New Companies can be created under Settings > Companies and ticking counter party).
3) The Lease type is which asset group the lease belongs to. (New types can be created under Leasing > Lease types).
4) The Cost center helps to categorise your data in reports. (New Cost centers can be created under Settings > Cost center).
3) The Portfolio helps to categorise your data in reports. (New portfolios can be created under Settings > Portfolios).
6) Select Currency from the drop down menu.
By leaving Currency blank ('Select(Optional)') the report will run from the lessee company point of view and will assume their home currency. If a currency is selected, then all columns 'in base currency' will be converted to the currency selected. All currency exchanges are made at the exchange rate on the day of change.
7) Select the report Start date from the calendar.
8) Select the report End Date from the calendar.
9) Lease ID (Optional) is used to filter the results. If you only need information related to one particular lease, enter the lease ID here. The lease number is automatically assigned, to see a list of all leases with their lease IDs click Leasing > Register (called Trade ID).
10) Report Name (Optional) is used to identify the report. You will see it listed in the report library as Custom Report Name:
11) Click Show to view the Lease Change Report. Click Save to save the report, and an email with a zip file will be sent to your email. Click Back to abandon your changes.
Values column by column. And also posting examples if you are using the report to make postings.
Changes to liability in currency will show the addition or decrease to your liability, in the agreement currency. The next two columns will split this into additions and decreases.
Additions to liability in base currency are the Credit to Lease liability on the balance sheet and will only show only additions to your liability in the Entity’s base currency.
Decrease to liability in base currency is the Debit to Lease liability on the balance sheet and will only show decreases to your liability in the Entity’s base currency.
Changes to Right-of-Use Assets in currency will show the addition or decrease to your Right-of-Use Assets in the agreement currency. The next two columns will split this into additions and decreases.
Additions to Right-of-Use Assets in base currency will show additions to your Right-of-Use Assets, in the Entity’s base currency, on the balance sheet.
Decrease to Right-of-Use Assets in base currency will show decreases to your Right-of-Use Assets, in the Entity’s base currency, on the balance sheet.
Realised difference in P&L in currency. In decreasing situations where we compare the liability and asset decreases, the difference needs to be posted to the income statement as gain/loss; usually, gain because liability is normally bigger than asset during lease term. In this column you will have the difference in the agreement currency.
Realised difference in P&L in base currency will show the previous column, converted to the Entity's base currency.
Negative = Debit to P&L realised gain/losses from leases.
Positive = Credit to P&L realised gain/losses from leases.
Realised FX difference
Negative value (loss to P&L)
Debit = Realised FX difference on leases
Credit = Lease liability in Balance Sheet
Positive value (gain to P&L)
Debit = Lease liability in Balance Sheet
Credit = Realised FX difference on leases
Change type
If you have a new lease then it will read "New". If the numbers are coming due to a change during lease term, then it will provide you the change type name.
Note: When initially creating a lease for the first time, you are running the initial starting values from this report. If you have some leases payments that affect only the Asset side (Lease Payments made on or before commencement date, Initial direct cost, Estimated cost for dismantling restoring asset or Lease Incentives Received), your initial liability and asset postings won’t match. Remember that the payment is already included in the asset posting (you need to have an opposite posting to that payment).