Build and recalculate ASC 842 lease schedules including lease liability, ROU asset, journal entries, disclosure outputs, and FS line mapping. Supports escalating payments and lease modifications.
Fieldwork Phase
01 Lease Inputs
Lease Terms
Operating vs Finance Operating: Single straight-line lease cost; ROU asset + liability on BS. Finance: Separate interest + ROU amortization, like a financed asset. Source: Lease agreement + ASC 842 criteria. Use the Lease Classification tool if unsure.
Commencement Date Date the lessee obtains the right to use the asset. Lease liability and ROU asset are first recognised on this date. Source: Lease agreement, certificate of occupancy, or commencement notice.
Date of initial recognition
Lease Term End End of the non-cancellable period, including renewal options reasonably certain of exercise under ASC 842. Leave blank if you enter periods directly. Source: Lease agreement schedule or renewal option documentation.
Or enter period count below
Override Period Count Overrides the period count derived from dates. Useful for round-number terms, e.g. enter 36 for a 3-year monthly lease. Example: "3-year lease" → 36 periods (monthly).
Overrides date-derived count
How Often Payments Are Made Determines the periodic discount rate and compounding periods. Annual rate ÷ 12, 4, or 1. Source: Lease payment schedule in the lease agreement.
Beginning vs End of Period End (arrears): Payment on last day — most common for commercial leases. Beginning (advance): Payment on first day — common for residential/equipment. Annuity-due (beginning) gives a higher PV at the same rate. Source: Lease agreement payment terms.
Level vs Escalating Level: Same payment every period. Annual escalation %: Payments increase by a fixed % each year (contractual, not CPI-indexed). Custom: Enter each period's payment manually. Only fixed or in-substance fixed payments are included in the lease liability under ASC 842.
Financial Terms
Fixed Lease Payment Per Period The contractual amount per period, excluding variable usage-based payments and executory costs (insurance, maintenance) unless the practical expedient to not separate non-lease components is elected. Source: Lease payment schedule. For gross leases consider separating non-lease components.
Per-period fixed payment
Per-period payment in year 1
Annual Payment Increase Percentage by which payments increase each calendar year. Applies to contractual fixed escalations included in the lease liability. Note: CPI-linked escalations are variable until the payment becomes known and may not be included.
e.g. 3 for 3% per year
Custom Payment Schedule
Period Range
Payment Amount
Incremental Borrowing Rate (IBR) Rate the lessee would pay to borrow funds over a similar term with similar collateral. Used when the rate implicit in the lease is not determinable. Enter as annual %, e.g. 5.25 for 5.25%. Source: Treasury / finance team; comparable borrowing rate documentation.
Annual %, e.g. 5.25 for 5.25%
Prepaid Lease Payments Payments made at or before commencement (other than incentives received). Added to the initial ROU asset measurement. Source: Lease agreement; check prepaid rent balance at commencement date.
Increases initial ROU asset
Lease Incentives Received Payments or allowances from the lessor (e.g. tenant improvement allowances, moving cost reimbursements). Deducted from the initial ROU asset. Source: Lease agreement; confirm amount and timing of receipt.
Reduces initial ROU asset
Initial Direct Costs (IDC) Incremental costs of obtaining the lease that would not have been incurred otherwise (e.g. external legal fees, brokerage commissions). Added to the initial ROU asset. Internal staff costs are generally excluded. Source: Invoices/contracts related to lease execution.
Increases initial ROU asset
Lease Modification
Modification / Remeasurement Event
Effective Date of Modification Date the modified lease terms take effect. The schedule up to this date uses original inputs; from this date the modified terms apply. Liability is remeasured at PV of remaining payments using the revised rate. Source: Lease amendment / modification agreement.
ℹ At the modification date, the outstanding lease liability is remeasured at the PV of remaining payments using the revised rate and term. The ROU asset is adjusted by the same amount (gain/loss if scope decreases).