If you have leases with ownership transfer or reasonably certain purchase option, they are to be depreciated over their economic life, which is typically longer than the lease term. (The concept is that because you will own the asset at the end of the lease, you can continue to use and depreciate it over the full economic life.) Once the lease expires, the lease no longer appears on regular accounting reports in EZLease. However, you can use this report to track the depreciation after the lease expires until the end of its economic life. All report options are standard.
This report is not available if the option “Report depreciation after lease expiration” is unchecked in System Options.
Only leases that are in their extended depreciation period (after lease expiration, but before end of economic life) are included on this report. By definition, all leases listed are finance.
For each lease, the Right-of-Use asset is shown, with the accumulated depreciation on the date the lease expired, current period depreciation expense, and accumulated depreciation at the end date of the report.
If the lease expiration date is during a report period, an extra line is displayed noting this fact and the amount of asset that is being carried over from leased to owned assets.
You are permitted to enter an early termination any time up to the end of the economic life. If you do so, and the early termination date is during the report period, the report shows the amount of termination loss due to the premature termination and writing off of the asset. If you enter a correction termination, the reversal of activity goes only back to the expiration of the lease and affects only the depreciation; it is not possible to reverse the actual lease activity through a correction termination dated after the lease expires.