Release 8.7 - November 2022

Better understand account balance changes period over period using the new Roll Forward report. The new report provides summary opening & closing balances, trending balances by fiscal period and lease-level activity, allowing you to view activity at both a high-level and in granular detail. The report can be useful when reviewing financial information, closing reporting periods, performing balance sheet reconciliations and presenting information to the senior management and auditors.

The Roll Forward report is currently only available for Lessee reporting. It will be made available for lessor and SBITA reporting in a future update.

Easily reconcile balances between EZLease and your ERP using the new Account Reconciliation template. This template automatically compares two sets of journal entries and returns a list of variances at both a lease level and account-totals level. It works for any record in EZLease (including lessee, lessor, and SBITA records), for all accounting standards. Beyond comparing EZL with your ERP, it’s useful anytime you need to compare journals, such as determining the impact of a lease update.

• Improved handling of SBITA’s that start before GASB 96.
  • Now you can enter an SBITA with a start date that’s before your GASB 96 application date, and EZLease will automatically exclude any activity prior to your application date.
• Updated buttons to add a lease and view all leases from icons to text. They now read “New Lease” and “Lease List.”
• Added “Finance” and “Operating” labels to journal entry transaction titles to improve clarity.
• Resolved issue in which a rent start step start date would show as “null.”
• Improved warnings for when transition IBR is required.
• Added a new loading indicator when EZLease is initially opening.

 

In rare cases, reporting outputs may vary between previous and new versions of EZLease as we make accounting improvements. See the table below for a complete list of accounting updates included in the newest release.

If you believe your leases are affected by one of the scenarios listed below, you can click HERE to open the previous EZLease version and re-run your reporting outputs for direct comparison to the new version. We encourage customers to leverage the Account Reconciliation Template to make this process easier.

Note that you should only use previous versions of EZLease to test reporting outputs. You should not add or edit leases, or modify system options while using a previous version of EZLease.

Scenario and impact of update	ASC 842	IFRS 16	GASB 87	GASB 96	Lessee	Lessor	ARO
Scenario: When a right to use asset is impaired, the journal entry should use account "Allowance for impairment" at the time of impairment and reverse the balance at the time of termination of lease. In the earlier version the impairment balances for the balance sheet account were posted in "Accumulated Amortization" and reversed in "Allowance for impairment". This resulted in inaccurate balances in "Accumulated Amortization" and "Allowance for impairment". Impact: In the earlier version. the Account "Allowance for impairment" will have incorrect correct balances during the tenure of the lease term. This has now been corrected. Correction entry: This report impacts retrospective accounting. The user needs to post an adjustment entry to ensure all YTD balances are accurate.	x	x	x		x
Scenario: Operating lease verification report was showing an error when multiple revisions were made in the same reporting period. Impact: In the earlier version, the Operating lease verification report was displaying error and incorrect balances. This has now been corrected. Correction entry: No adjustment entry required.	x				x
Scenario: If an operating lease with an asset adjustment or Initial Direct cost is revised at least twice, and the first revision changes the end date but the second does not, the opening balance of accumulated amortization did not match the prior period's ending balance. Impact: Due to the error the user was not able to generate accurate reports. This has now been corrected. Correction entry: No adjustment entry required as reports were showing imbalance error message and user was not able to post any journals.	x				x
Scenario: This case only impacts Leases entered in EZLease using the user interface and not the excel upload template. For the classification of such leases, EZLease was considering the Expected Guaranteed Residual amount and not the Guaranteed Residual amount which could result in wrong classification of leases and incorrect accounting output.  Impact: Earlier the classification could have been wrong for some leases. Now, all leases with Guaranteed Residual amount and Expected Guaranteed Residual amount will now have correct classification of leases. Correction entry: This will impact retrospective accounting and might need adjustment entry for selected users. The user should unlock the lease and force reclassification of the lease. EZlease will update the lease classification accurately.	x				x
Scenario: Operating leases with a lease incentive which was impaired in a future date is resulting in an incorrect calculation of impairment loss. Impact: The impairment calculation will be accurate for the above-mentioned leases. Correction entry: This report impacts retrospective accounting. The user needs to post an adjustment entry to ensure all YTD balances are accurate.	x				x
Scenario: Capital leases before transition to the new standard with the Initial Direct cost resulting in an error when transitioning to the new standard. Impact: The user was not able to generate a JE report with accurate balances. This has now been corrected. Correction entry: No adjustment entry required as the earlier version of EZlease was not producing a Journal entry.	x	x	x		x
Scenario: A lease was amortized over the lease term even when the remaining economic life is less than the lease term. Impact: The amortization amount for such leases were inaccurate in the earlier version, which has now been corrected. Correction entry: The amortization life must be changed from Lease Term to Economic Life. This impacts retrospective accounting. The user needs to post an adjustment entry to ensure all YTD balances are accurate.	x	x	x	x	x
Scenario: An Operating lease is revised and at the day of revision the lease meets the classification criteria of Finance lease. Impact: EZLease was still classifying such leases as operating leases resulting in wrong classification and incorrect amount in the earlier versions. This has now been corrected. Correction entry: The newly created lease (which was incorrectly classified as operating) must be reclassified. This will impact retrospective accounting and the user needs to post an adjustment entry to ensure all YTD balances are accurate.	x				x
Scenario: For certain cases where the lease is revised multiple times in the same rent payment period, EZLease is calculating an increase in liability even when the rent doesn't change. Impact: EZLease will calculate accurate lease calculation even when there are multiple revisions within the same payment period. Correction entry: This will impact retrospective accounting and the user needs to post an adjustment entry to ensure all YTD balances are accurate.	x	x	x	x	x
Scenario: The Account Title in the JE report has been updated for transactions related to Cash (Operating), Cash (Finance) and Level Rent termination gain. Impact: This change will have no impact on the lease calculations. Correction entry: NA	x	x	x	x	x