The finance lease amortization schedule gives a complete listing of all rent payments made for each lease, with the associated liability and interest payments, and the depreciation booked for the rent payment period.
The following additional options, beyond the standard report options, are available for the report:
Erase Executory Costs/Non-lease Components
By default, the executory costs and non-lease components for each rent payment are shown separately from the gross rent. (If a FAS 13 lease is part capital, part operating, the operating rent is completely excluded from the Finance Amortization Schedule.) You may choose to have the executory costs and non- lease components eliminated, so that the “Finance lease rent” displayed is reduced to just the net finance rent.
Ignore Early Terminations in Schedule
By default, if the lease has an early termination, the amortization schedule stops at that point. Check this box to ignore the early termination and see the schedule as if the lease will continue until normal expiration.
Report Periods By
You may have the schedule display one line per rent payment period (whether or not rent is actually paid), per fiscal period, or per fiscal year. (Fiscal dates are set in System Options, Fiscal Dates tab.)
The output shows the breakdown of each rent payment into its parts of liability payment, interest payment, and executory costs and non-lease components (if any), as well as the depreciation expense that applies to the period. In order to keep each period on a single line, this report is printed in landscape mode. For each account, both a current period amount and a cumulative amount from lease inception is shown. The Booking Date is ignored for purposes of the schedule (the schedule starts with the first rent payment, even if the Booking Date is later), though the Booking Date is honored in deciding whether the lease is active as of the date specified in the report setup options, and therefore whether the lease should be included in the report.
If you do not have a printer installed, the report will be cut off at 8.5"; to correct this, please install a printer. You can install a generic printer to LPT1 even if you don’t have a physical printer attached.
Payment Date/Period End Date
If you have chosen to run the report by payment periods, this is the date of the rent payment: the first day of the payment period for a lease paid in advance, the last day of the period for a lease paid in arrears. If you run the report by fiscal period or year, the period end date is shown.
If you have a rent holiday with a daily period length that immediately follows a one-day rent payment, the two are considered as a unit, and the period includes both rent steps. Otherwise, a rent holiday with a daily frequency is treated as a single unit separate from other rent steps; a rent holiday with a longer frequency is shown period by period the same as a regular rent step.
A counter for the number of payments made (with rent holidays counted as described above).
Finance Lease Rent
Gross rent less any operating rent (for split capital & operating leases); if “Erase executory costs/non-lease components” was chosen in the report options, executory costs and non-lease components are also subtracted to calculate this number. This is shown as a negative number, to indicate a credit to cash (the same as the finance rent paid on the Income Statement/Balance Sheet Detail report).
Liability paid by this rent payment. If the interest paid for a period is greater than the net finance rent, this number will be negative, indicating negative principal amortization which causes the liability balance to increase.
The life to date column shows liability paid (increasing) or liability remaining (decreasing), depending on the setting of the system option “Descending asset and liability balances in amort schedule.”
Payment of interest accrued since the last rent payment was made. Note that under FAS 13/IAS 17, for leases paid in advance (or if the report is run by fiscal period), this is not the same as the interest expense for the period. For a normal lease paid in advance, the first payment has no interest payment; since the lease has just started, there has been no time for interest to accrue. Interest then accrues during the period and is paid off when the next rent payment is made.
Executory Costs/Non-lease Components
If the “Erase executory costs/non-lease components” report option was selected, this column is omitted from the report. Otherwise, this displays the executory costs and non-lease components, if any, for the period. On a text report, the total executory cost or non-lease components are reported; on a spreadsheet report, each type of executory cost or non-lease component is reported separately.
The depreciation recognized for the period. If system option “Descending asset and liability balances in amort schedule” is set, the cumulative number is the net asset for the lease (Right-of-Use asset minus accumulated depreciation); if the option is not set, the cumulative number is the accumulated depreciation.
IFRS 16 Reporting: IAS 17 Operating Leases
If the cumulative catchup transition option is chosen, a lease that starts before the transition date to IFRS 16 which was operating under IAS 17 is shown with the IAS 17 information (including rent leveling), similar to the operating lease amortization report, up to the transition date, then the IFRS 16 format for later dates. If the transition date is in the middle of a rent payment period, a report period is created that ends the day before the transition, so that all operating information is shown with the old format, then finance information with the new format.