Overview

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 amortization booked for the rent payment period. The output shows the breakdown of each rent payment into its parts of liability payment, interest payment, and executory costs or non-lease components (if any), as well as the amortization 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.

Report Options

For more information on standard report parameters, please see the following article: Report Options. For report options specific to this report, please see below:

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. 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.

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.

Note: Fiscal dates are set in System Options > Fiscal Dates tab.

Special Options

For more: Reporting - Special Options

Report Output

Like most other reports, the amortization schedule reports can be run in PDF [Preview] output or Spreadsheet output (.xlsx).

PDF Output

Spreadsheet Output

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.

Payment #

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

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.”

Interest Paid

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 PDF 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.

Amortization Expense

The amortization 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 amortization); if the option is not set, the cumulative number is the accumulated amortization.

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.