Lease Categories

Lease categories are used to allocate lease transactions to different general ledger accounts according to the category a lease belongs to.

Lease Category field descriptions:

• Lease Liability (current) – mandatory, short term liabilities.
• Lease Liability (non-current) – mandatory, long term liabilities.
• Contingent Liabilities (current) – optional, used if use “Estimated Cost for Dismantling/Restoring Asset” on Lease Agreement Card. Provision for Dismantling/restoring of RoU Asset at end of lease, included in RoU Asset Cost
• Contingent Liabilities (non-current) – optional, used if use “Estimated Cost for Dismantling/Restoring Asset” on Lease Agreement Card. Provision for Dismantling/restoring of RoU Asset at end of lease, included in RoU Asset Cost
• RoU Asset on Transition – mandatory, used of initial adoption of IFRS16. As it will be posted on transition date, this acount will help distinguish between old leases and leases originated under IFRS16
• RoU Asset on Commencement – mandatory, initial measurement of RoU, at commencement date. May include dismantling costs, initial direct costs, lease prepayments.
• RoU Asset on Modification – mandatory, increase/decrease in carrying value of RoU asset because of lease modification (change of term, for example).
• RoU Asset Direct Cost Added – optional, used when direct costs needs to be added to the asset.
• RoU Asset on Reclassification – optional, used when the lease moves from one category to another.
• RoU Asset on Expiration – mandatory, used to net Cost with Depreciation when lease expired/terminated
• RoU Asset Cost Increase on Modification – optional, used if RoU Asset Modification method is GROSS in Lease Setup. Increase in carrying value of RoU asset because of lease modification (change of term, for example).
• RoU Asset Cost Decrease on Modification – optional, used if RoU Asset Modification method is GROSS in Lease Setup. Decrease in carrying value of RoU asset because of lease modification (change of term, for example).
• RoU Asset Depr. on Active Lease – mandatory, regular depreciation (credited monthly, for example)
• RoU Asset Depr. on Reclassification – optional, used when the lease moves from one category to another
• RoU Asset Depr. Decrease on Modification – optional, used if RoU Asset Modification method is GROSS in Lease Setup. Decrease in carrying value of RoU asset because of lease modification (change of term, for example).
• Rou Asset Depr. on Expiration – mandatory, used to net Cost with Depreciation when lease expired/terminated
• RoU Asset Impairment – optional, Increase/decrease of asset impairment.
• RoU Asset Loss On Sub-Lease (Net) – optional, used with Sub-Lease module only.
• Depreciation Expense – mandatory, balancing for account RoU Asset Depr. on Active Lease.
• Interest Expense – mandatory, accrual of lease interest.
• Impairment Losses (RoU Assets) – optional, balancing for account RoU Asset Impairment.
• Gain/Loss on Lease Termination - mandatory, gain/loss on lease termination.
• Operating Expense (Short-term and Low-value leases) – mandatory, expense account for short term low value leases.
• Operating Expense (Non-lease component included in payment) – mandatory, services included in Lease Payment expense account.
• Operating Expense (Operating Leases, IFRS16) – mandatory, expense account for operating leases
• VarCost1..VarCost2 – Expense Acc. - optional, used if Variable Cost is enabled in Lease Setup. Expense accounts to split services in more details. (I.e. Heating, water, electricity).
• Sundry write-offs (Rounding residual) – mandatory, account for rounding residual (transaction consistency).
• Losses on onerous leases – optional.
• Sub-Lease Losses (Net) – optional, used with Sub-Lease module only.
• A/P Clearing – Lease Payments (Cr) – mandatory, lease payment reversal, when payment due is “In Arrears”.
• A/P Clearing - Prepayments (Cr) – mandatory, lease payment reversal, when payment due is “In Advance”.
• A/P Allocated to IAS17 Accounts (Dr) – optional, used if “Use IAS17 Comparative” enabled in Lease Setup. Transfer lease payment from A/P Clearing accounts to IAS17 Prepayment (rev.) or IAS17 Payment against Accrual (rev.).
• IAS17 Prepayment (rev.) – optional, used if “Use IAS17 Comparative” enabled in Lease Setup. Lease Payment reversal transferred from A/P Clearing (in Advance) (Cr).
• IAS17 Prepayment Amort. (rev.) – optional, used if “Use IAS17 Comparative” enabled in Lease Setup. Lease Payment Expensed reversal account with straight-line expense method.
• IAS17 Accrual (rev.) – optional, used if “Use IAS17 Comparative” enabled in Lease Setup. Expenses recognized, before lease payment reversal account.
• IAS17 Payment against Accrual (rev.) – optional, used if “Use IAS17 Comparative” enabled in Lease Setup. Lease Payment reversal transferred from A/P Clearing (in Arrears) (Cr).
• IAS17 Expense (rev.) – optional, used if “Use IAS17 Comparative” enabled in Lease Setup. IAS17 expense reversal account.
• A/P Clearing - Principal Portion of Lease Liability – optional, used if “Split Direct Cash Flows to principal/int/oper” in Lease Setup. Principal part in Lease Payment.
• A/P Clearing - Interest Portion of Lease Liability – optional, used if “Split Direct Cash Flows to principal/int/oper” in Lease Setup. Interest part in Lease Payment.
• A/P Clearing - Operating Cash Flow - optional, used if “Split Direct Cash Flows to principal/int/oper” in Lease Setup. Operating Expense part in Lease Payment.
• RoU Asset Clearing – optional, residual value from RoU Asset to Fixed asset on lease termination.
• Accrued Initial Direct Costs – optional, amount included in RoU asset cost at commencement date
• Lease Payments Before Lease Commencement date – optional, payments in local accounting, before lease commencement
• Incentives Received – optional, incentives received before lease commencement, removed from RoU Asset.
• Sub-Lease FL Net Receivable (Current) – optional, used with Sub-Lease module only.
• Sub-Lease FL Net Receivable (Non-Current) – optional, used with Sub-Lease module only.
• Sub-lease FL Interest Income – optional, used with Sub-Lease module only.
• Sub-lease OL Lease Income – optional, used with Sub-Lease module only.
• Sub-lease A/R Clearing – optional, used with Sub-Lease module only.
• Sub-Lease Activation Clearing – optional, used with Sub-Lease module only.
• Sub-lease Gain on Activation (Gross) – optional, used with Sub-Lease module only.
• Sub-lease Loss on Activation (Gross) – optional, used with Sub-Lease module only.
• Deferred Tax Asset - optional, used whe deferred tax is turned on and lease is IAS17 Operational type
• Deferred Tax Asset Expense - optional, used whe deferred tax is turned on and lease is IAS17 Operational type. Expenses account.
• Don't separate non-lease component – optional, mark “Yes” if do not need to separate non-lease component from payment.
• Don't capitalise lease (expense rental payments) - optional, used only with Short Term/Low Value leases. mark “Yes” if do not need to capitalize this asset category.