Product Enhancements
Multi-Factor Authentication (MFA)
EZLease now supports MFA, which adds an additional layer of security to your account by requiring users to enter a password and a one-time MFA token to log in. Once MFA is enabled for an account, users will be prompted to register an authentication app on their next login. For more: Multi-Factor Authentication (MFA)
Locking Periods
Prevent users from mistakenly booking changes in previous accounting periods by closing, or locking, those periods. When a period is locked, users must book changes in the current or future periods, and EZLease will automatically generate catch-up accounting entries in the open period. For more: Locking periods in EZLease
Additional enhancements
- Login page works with password managers for automatic username/password entry.
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Hide ARO functionality - EZLease now gives you the ability to hide ARO functionality for accounts that do not leverage ARO accounting.
- To hide ARO functionality: Click File > System Options > ARO > uncheck Enable ARO Accounting.
- Support for manufacturer/dealer lessor accounting with COGS/revenue for new leases, as per ASC 842-30-45-4 and IFRS paragraph 71.
- Removed Ownership transfer checkbox from the Additional Data tab when EZLease is set to GASB accounting
- Increased maximum report size EZLease can create.
Accounting Changes
The March 2024 update includes accounting updates to improve accounting accuracy for various scenarios. View a complete list of affected scenarios below.
If you believe your leases are affected by one of the scenarios, you can open the previous EZLease version for a limited time, and re-run your reporting outputs for direct comparison to the new version. To do this, login into EZLease, click on the What’s New link at the top of the EZLease dashboard. You will see a link to launch the previous version of EZLease.
We encourage customers to leverage the Account Reconciliation Template to make this process easier.
Note: You should only use previous versions of EZLease to test reporting outputs. You should not add/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: If a GASB 87 lessor lease is early terminated, the gain or loss is mislabeled on the Journal Entries report--losses are shown as gains and vice versa. (The amount is placed in the proper debit or credit column.) |
x | x | |||||
Scenario: If a GASB 62 operating lessee lease has a deferred rent liability, or the GASB 87 transition date is not at the start of a rent payment period, the GASB 87 ROU asset was reduced by that amount (as is done for ASC 842). Note: This principle is the same for deferred inflow of resources on lessor leases. |
x | x | x | ||||
Scenario: If a GASB 87 lessor lease is early terminated, and the net deferred inflow of resources is less than the remaining receivable, a termination loss is recognized. The account number displayed on the journal entries report is the number for Owned Assets, not Termination Gain/Loss. |
x | x | |||||
Scenario: If a lease with an ARO also has an impairment, and the ARO does not have a termination specified, the impairment remains on Income Statement/Balance Sheet reports for periods after the expiration of the lease. Impact: The impairment is zero after the end of the lease. Correcting entry: None; journal entries were unaffected. |
x | x | x | x | |||
Scenario: If a lease starts before ASC 842/IFRS 16 application and has lease incentives, the Asset Components report shows incorrect values for the incentive amortization. Other reports are unaffected. Impact: Incentive amortization and net asset are properly calculated. Correcting entry: Rerun Asset Components report. |
x | x | x | ||||
Scenario: If a FAS 13 operating lease has executory costs and the ASC 842 transition date is in the middle of a rent payment period, the prepaid rent that is applied to the ROU asset at transition excludes the executory cost portion of the rent, which has the effect of understating expenses over the life of the lease. Impact: Prepaid rent adjustment of ROU asset includes executory cost portion. Correcting entry: Rerun Journal Entries from transition date to present to update ROU asset and amortization. |
x | x | |||||
Scenario: When an ASC 842 operating lease has a rent holiday that covers an entire reporting period and the lease has the Level Operating Rents flag turned off, the journal entries report did not show the increase in liability and decrease in accumulated amortization. The activity is shown properly in the IS/BS report. This also affected the Roll Forward transaction level detail tab. Impact: Journal entries are properly shown (debit to accumulated amortization, credit to current liability). Correcting entry: Rerun Journal Entries report and use the "operating rent accrual" transaction. |
x | x | |||||
Scenario: If the system option for 360-day accounting year is chosen, a report ends on the last day of a calendar month, and an ASC 842 operating lease is in the middle of a rent payment period, the liability portion of the future rent commitments is miscalculated. For example, the liability repayment for the next 12 months doesn't match the current liability balance at the report end date. Impact: Minimum rent report shows correct liability payment per year. Correcting entry: Rerun Future Minimum Rents (or Income Statement/Balance Sheet Detail) report. |
x | x | |||||
Scenario: If a lease has two revisions in a single report period, and the second revision has (only?) a change in the asset adjustment, the asset adjustment results in two gains in a journal entries report, one labeled “Revision gain” and the other labeled “Asset adjustment gain,” both for the same amount. The doubled entry means that the report is unbalanced and an error is reported. Impact: A single "Revision gain" is now reported. Correcting entry: None, since error was reported previously. |
x | x | x | x | |||
Scenario: If a Roll Forward report is run for a single period, the Asset and Liability accounts on the Summary and Trending tabs show all zeroes for closing balances. Closing balances are correct on Transaction Level tab, and if the report is run for multiple periods. Impact: Correct closing balances are now reported. Correcting entry: Rerun report. |
x | x | x | x | |||
Scenario: If an ARO layer with a negative value has a begin date before but booking date after an IFRS rate-table change, and the net ARC asset of other layers of that ARO at the begin date is less than the given layer's reduction, the accumulated amortization is sometimes inconsistent between reports starting on different dates. Impact: Negative layer is now consistently reported. Correcting entry: Run current Income Statement/Balance Sheet Detail report using both prior EZLease version and current version. For any AROs with changes to accumulated amortization, make manual adjusting entry (balancing entry to ARC amortization expense). |
x | x | |||||
Scenario: For ASC 842 operating leases which start before the ASC 842 transition date but are booked after, the Roll Forward report showed an inconsistent total; Summary and Trending tabs had one amount for the Payments section, while Transaction Level had another (Summary/Trending totals were correct). Impact: Totals are consistent across all three tabs. Correcting entry: Rerun report. |
x | x | |||||
Scenario: If a Short Term, Low Value, or lessor operating lease has rent leveling, the current portion of deferred rent liability (or asset for lessors), shown on the Income Statement/Balance Sheet Detail spreadsheet, is incorrect. This affected v9.0 only. Impact: Current portion of deferred rent is now calculated correctly. Correcting entry: Rerun report. This is not part of the journal entries, so likely no other correction is needed. |
x | x | x | x | x | ||
Scenario: If a lessor direct financing lease with deferred sales profit is revised, and the lease after revision meets the tests to be classified as sales-type, an out of balance error is reported. An out of balance error on journal entries was also reported if such a lease has initial direct costs. Impact: All reporting is now properly balanced. Correcting entry: Rerun report. Since an error was previously reported, it is unlikely that incorrect entries were booked. |
x | x | |||||
Scenario: If a lease is revised from Short Term to Finance, and immediately follows in the report another lease which terminates during the report period, the accumulated amortization is incorrectly calculated for that and future report periods. Impact: Accumulated amortization and amortization expense are reported correctly. Correcting entry: Review any leases revised from Short Term to Finance, and if prior lease on report terminated, update amortization. |
x | x | x | x | |||
Scenario: If a lessor operating lease is revised from Operating to Direct Financing, and has rent leveling as an operating lease, the deferred rent asset was not carried over to the new lease for amortization over the remaining life. Impact: Deferred rent is now shown in Deferred Rent Rollover on new lease, eliminating a termination loss and offsetting any deferred profit. This does NOT alter any existing leases, but only changes the setup of leases revised in the future. Correcting entry: None, since existing leases do not change. If you wish to alter a lease that was affected by this, revise it to enter a Deferred Rent Rollover equal to the termination loss (deferred rent balance) at termination on the previous revision/new lease setup. |
x | x | |||||
Scenario: Reversal of a US GAAP lessor finance lease with an unguaranteed residual asset shows incorrect JE results for the unguaranteed residual and the new asset on termination.. Impact: Journal entries are now correct. Correcting entry: If you have a reversal termination of a lessor finance lease (either sales-type or direct financing), rerun the journal entries report for the period of the termination and replace the previously recognized termination transaction. |
x | x | |||||
Scenario: If a GASB lessee lease starts before GASB 87 implementation, is capital under GASB 62, and has executory costs, the minimum rents report shows negative rent for the final year the lease is active. Impact: Minimum rents report is now correct. Correcting entry: Rerun report. |
x | x | |||||
Scenario: If an ASC 842 operating lease starts in the middle of February and ends on the same day of the month, or one greater, in a non-February month, and a report is run that ends on the next to last day of the lease term calculated the accumulated amortization as greater than ROU asset. In certain circumstances, it also affects operating lessor leases with rent leveling (with the same dates). Impact: Accumulated amortization (or deferred rent for lessor leases) is recalculated over the entire life of the lease to be consistent and not overstated. Correcting entry: If you have affected leases, compare accumulated amortization using prior report and new report; adjust by debiting accumulated amortization and crediting amortization expense (reducing both). |
x | x | x | x | |||
Scenario: If the begin date of a lease is revised to be later, in some cases the accumulated amorization is miscalculated and an out of balance error is reported. Impact: Accumulated amortization change is now calculated correctly. Correcting entry: None, because original situation reported an error. |
x | x | x | x | x | ||
Scenario: If an SBITA starts before the application date of GASB 96, is in the middle of a payment period at the application date, and no more payments are due in that payment step, an error may be reported either when saving the record or when running a report. Impact: SBITA is now set up correctly. Correcting entry: None, because original situation reported an error. |
x | ||||||
Scenario: In the Summary and Trending tabs of the Roll Forward report, the opening balances for current and long term liability for operating leases were shown in the rows for finance leases. Impact: Liability for operating leases is now reported properly. Correcting entry: Move liability from finance to operating accounts, if it was previously booked from the Roll Forward report. |
x | x | |||||
Scenario: If an operating lessor lease with rent leveling was revised, became a direct financing lease, and had deferred profit, the deferred profit was calculated incorrectly. The level rent balance was recognized immediately as a loss, rather than recognized over the lease life. Impact: Deferred rent is now combined with the deferred profit and recognized over the remaining life. Correcting entry: Compare previously recognized deferred profit balance to the new balance. Adjust profit balance; balancing entry is to termination gain/loss. |
x | x | |||||
Scenario: A reversal termination of a lessor lease can cause an error in the following situations:
Impact: Reports are now balanced. |
x | x | |||||
Scenario: If a lease starts as GASB 62 capital and has executory costs, a minimum rents report run under GASB 87 showed negative rent for the final year the lease is active. Impact: Rent for all future years is correct. Correcting entry: Update any future rent disclosures. |
x | x | |||||
Scenario: If a lease starts in the middle of February and ends on the same day of a non-February month, the lease term is calculated as slightly less rather than slightly more than a whole number of months, which can cause amortization to be miscalculated. Impact: The term is now calculated as one day more than a whole number of months, and amortization calculated accordingly. Correcting entry: Compare accumulated amortization with old and new reports and adjust; balancing entry is to amortization expense. |
x | x | x | x | |||
Scenario: If a lease's begin date is revised to a later date, in some cases a report covering the date of revision showed an out of balance error. Impact: Reports are now balanced. Correcting entry: None, because original situation reported an error. |
x | x | x | x | |||
Scenario: If an SBITA starts before GASB 96 application and has only a OneTime payment (made before application), EZLease reports an error. Impact: EZLease now sets up the SBITA with no asset or liability. Correcting entry: None, because original situation reported an error. |
x | ||||||
Scenario: If a lease is transitioning to month-to-month status at expiration, the Roll Forward report doesn't show an opening or closing balance for accumulated amortization. Impact: Balances are properly shown for accumulated amortization. Correcting entry: Update balances as shown. |
x | x | x | x | |||
Scenario: If a direct financing lease has payments in arrears and is revised in the middle of a payment period, an error is reported. Impact: The revision is properly calculated. Correcting entry: None, because original situation reported an error. |
x | x | |||||
Scenario: If a GASB lessor finance lease transitions to month to month, in some cases the Beginning Receivable Removed is reported at the end of the MTM period, rather than just the end of the lease, causing an out of balance error. Impact: The Beginning Receivable Removed is reported only at the expiration of the lease. Correcting entry: None, because original situation reported an error. |
x | x | |||||
Scenario: If variable payments are uploaded with the option to subtract the base rent from the uploaded rent (the difference is the variable payment), the total variable payment is shown as the entire uploaded amount rather than just the net, and an out of balance error is reported when running reports covering that period. Impact: The total variable payments now show the net uploaded amount. Correcting entry: None, because original situation reported an error. |
x | x | x | x | x | ||
Scenario: If an ASC 842 lessor direct financing lease has a deferred rent rollover, the deferred profit is not properly amortized. Impact: The periodic amortization of deferred profit is now correctly calculated. Correcting entry: Such leases should be rerun from inception. |
x | x | |||||
Scenario: For the ARO Accretion Tables report only, if an ARO has a termination date and type entered, the ARO is not included in the report, even if the "List leases active any time" box is checked. Impact: Terminated AROs are included in Accretion Tables if "List leases active any time" is checked. Correcting entry: Rerun Accretion Tables report. |
x | x | x | ||||
Scenario: In some cases, if a lessor lease was revised and changed from operating to direct financing, an error appeared while saving the revision. Subsequent reports were correct. Impact: No spurious error message is displayed on saving the lease. Correcting entry: None required; actual reports were correct. |
x | x | |||||
Scenario: For reports which list all account numbers at the end of the spreadsheet line, such as the Income Statement/Balance Sheet and Listing reports (but not journal entries), GASB lessor reports list the Deferred Inflow account numbers under the title "Lease Revenue" and vice versa. Impact: Account numbers are now in correct columns. Correcting entry: No accounting values changed; problem was only with account numbers. If Income Statement/Balance Sheet report was used for booking and account numbers were pulled from the report, any entries to Deferred Inflow or Lease Revenue need to be reversed and rebooked to the correct account. |
x | x |