Lease Separation
For each lease you should use a separate Excel copy of provided file.
First step is to enter lease information into Calculator's sheet "ASC 842 Calculator" (based on fields explained in: Fields).
After entering lease the monthly information for this lease schedule can be viewed in "How to Use" sheet.
In the sheet "How to use" we can see what kind of postings should be done to recognize lease on your General Ledger. See image above.
This sheet based on information entered in G18 cell (Yellow block with date) shows what numbers are generated for that period at the end of wanted period (month).
Lease Classification
If you are using ASC 842 version of calculator beside the date you will also see Lease Classification field which shows what type of lease is classified (Finance or Operating), based on parameters in "ASC 842 Calculator" sheet.
With date entered in cell G18, in lines below we have all operations done for that selected period.
Such as:
- Payment and lease payment + non-lease comp. balance.
- Operating expense and Interest/Depreciation (ASC842 and Operating lease only).
- Amortization expense and depreciation on RoU.
- Interest expense and increase of liabilities by it.
- Remeasurement on liabilities and on RoU.
- Impairments on RoU only.
